RD Calculator – Recurring Deposit Maturity & Interest
Use this recurring deposit calculator to estimate maturity amount and interest earned. Enter your monthly contribution, interest rate and tenure. Most Indian banks use quarterly compounding for RDs.
Calculate RD Returns
How RD interest is calculated
Each monthly installment is compounded for the remaining tenure. The rate per period is (annual rate / compounding frequency). For quarterly compounding, each installment grows for the number of quarters left until maturity.
Example calculation
If you invest ₹5,000 per month at 6.5% per annum for 5 years (quarterly compounding):
Total invested = ₹3,00,000. Maturity is the sum of future values of all 60 installments, typically around ₹3,51,000–3,55,000 depending on exact compounding.
FAQs
Key Terms
- Maturity amount
- Final value received at deposit end: principal plus accumulated interest.
- Compounding
- Interest earned on both principal and previously earned interest.
- Annualized rate
- Interest rate quoted for one year; converted internally for period-wise calculations.
Benefits of This Calculator
- Quickly compare tenure and rate combinations before locking deposits.
- Understand maturity, principal, and interest split through chart-style outputs.
- Use formula and FAQ context to validate bank app numbers confidently.
Related Calculators
How an Indian bank actually computes RD interest
A recurring deposit treats every monthly installment as a separate mini-FD. The first installment earns interest for the full tenure, the second for one month less, the third for two months less, and so on. Most Indian banks compound the interest quarterly using the formula M = R × [(1 + i)n − 1] / (1 − (1 + i)−1/3), where R is the monthly installment, i is the quarterly rate (annual rate ÷ 4) and n is the number of quarters. The calculator above uses exactly this formula so the result matches what SBI, ICICI or Post Office RD will pay.
Two practical points. First, the RD rate the bank quotes is the same as the FD rate for that tenure — there is no separate "RD rate." Second, missing an installment attracts a small penalty (usually ₹1–₹2 per ₹100 per month) and most banks close the RD if you skip six installments in a row, so set up a standing instruction from your salary account on payday.
Worked example: ₹5,000/month for 5 years at 6.8%
- Monthly installment
- ₹5,000
- Tenure
- 60 months
- Annual rate
- 6.80%
- Total deposited
- ₹3,00,000
- Maturity amount
- ₹3,57,856
- Interest earned
- ₹57,856
The early installments do most of the work — installment 1 earns interest for all 60 months, while installment 60 earns for none. That is why doubling the tenure more than doubles the interest.