Recurring Deposit (RD) Calculator
Estimate the maturity amount of your systematic monthly savings in a Recurring Deposit bank account.
RD Savings Output
Your recurring deposit growth metrics summarized:
Total Saved
The sum of all monthly installments deposited by you.
RD Interest Earned
The compound interest accumulated on your monthly contributions.
Maturity Amount
The final corpus withdrawable at the end of the RD tenure.
How is it calculated?
M = P \times \frac{(1 + r)^n - 1}{1 - (1 + r)^{-1/3}}Where M is maturity amount, P is monthly installment, r is quarterly compounding rate, and n is tenure in months.
Worked Examples
₹5,000 Monthly RD for 3 Years
Investing ₹5,000 monthly at an interest rate of 6% compounded quarterly for 3 years builds a maturity value of approximately ₹1,97,350.
₹2,000 Monthly RD at 7%
Saving ₹2,000 monthly for 5 years at 7% builds a total maturity corpus of ₹1,44,980.
Recurring Deposit (RD) Maturity & Savings Guide
What is a Recurring Deposit (RD)?
A Recurring Deposit (RD) is a special term deposit offered by banks that allows investors to save a fixed amount of money every month for a pre-determined tenure. RDs are ideal for individuals with regular monthly salaries who want to build a savings habit but do not have a lump sum to invest in a fixed deposit.
RDs offer guaranteed returns and earn interest at the same rate as fixed deposits. The interest rate remains locked throughout the tenure, protecting you from market fluctuations.
How to Calculate Your RD Returns
To estimate your RD maturity value, input your monthly installment amount, the annual interest rate, and the tenure in years or months. The calculator will project your total contributions and accumulated interest, showing the final payout at the end of the term.
The Compound Interest Formula for RDs
RD maturity amounts are calculated using a compound interest formula for recurring payments, compounded quarterly:
M = P * [((1 + r)^n - 1) / (1 - (1 + r)^(-1/3))]
Where M is the maturity value, P is the monthly installment, r is the quarterly interest rate (annual interest rate / 4 / 100), and n is the tenure in quarters (number of months / 3).
This formula reflects that your first monthly installment earns interest for the full tenure, while subsequent deposits earn interest for progressively shorter periods.
Frequently Asked Questions
Is interest earned on Recurring Deposits taxable?
Can I miss a monthly RD installment?
Results are estimates and should not be considered financial advice.