About the Recurring deposit calculator
A recurring deposit (RD) lets you deposit a fixed amount every month for a fixed term and earn interest at a rate set when you open it. It suits people who want to save a regular sum from income.
How the Recurring deposit calculator works
M = R × [(1 + i)^(n ÷ 3) − 1] ÷ [1 − (1 + i)^(−1 ÷ 3)]
- M
- Maturity value
- R
- Monthly deposit
- i
- Annual rate ÷ 4 ÷ 100 (quarterly rate)
- n
- Number of monthly deposits
Each deposit is made at the start of its month and earns interest compounded quarterly until maturity, so the first deposit earns the longest and the last the shortest.
This is the formula banks commonly use. Your bank’s figure can differ slightly with day counts or rounding.
Worked example
- Monthly deposit
- ₹5,000
- Annual interest rate
- 7%
- Time period
- 3 years
Example inputs
- Estimated value
- ₹2,00,686.49
- Total contributed
- ₹1,80,000
- Growth / interest
- ₹20,686.49
Calculated result
Why use a Recurring deposit calculator?
- Compare RD rates from different banks.
- See how much a monthly saving habit adds up to.
- Choose a term that reaches a target amount.
Recurring deposit calculator FAQs
How is an RD different from a SIP?
An RD earns a fixed rate agreed at the start. A SIP buys mutual fund units whose value moves with the market, so its result is not fixed.
What happens if I miss an instalment?
Banks usually charge a penalty for a late or missed instalment, and several missed instalments can lead to closure. Check your bank’s terms.
Is RD interest taxable?
Yes, at your slab rate, and banks deduct TDS when interest crosses the yearly threshold.
Can I change the monthly amount?
No. The instalment is fixed when the RD is opened. You can open another RD for a different amount.
Is a post office RD calculated the same way?
The post office RD also compounds quarterly, but it has its own fixed term and a rate notified by the government each quarter.