RD Calculator
Find the maturity value of a recurring deposit with fixed monthly instalments.
About the RD Calculator
A recurring deposit (RD) takes a fixed amount from you every month and pays a fixed rate on each instalment for the time it stays in the account. Enter the monthly amount, the rate and the tenure to see the maturity value and the interest earned.
Most Indian banks and India Post compound RD interest quarterly. School textbooks (ICSE) use a simple-interest formula instead; switch Method to see that figure, which is lower.
The formula
M = Σ P × (1 + r/4)^(4 × months remaining ÷ 12)
- M
- maturity value
- P
- monthly instalment
- r
- yearly rate as a decimal
- months remaining
- how long each instalment stays invested: the first earns for the whole tenure, the last for one month
Worked example
₹5,000 a month for 60 months at 6.7%
- You pay in 60 × ₹5,000 = ₹3,00,000
- Each instalment compounds quarterly for its remaining months
- Maturity ≈ ₹3,56,829, so about ₹56,829 of interest
Things to keep in mind
- Before tax: RD interest is taxable like FD interest.
- Banks may calculate slightly differently (for example by days), so expect small differences from the bank's statement.
Questions people ask
Is RD interest taxable?
Yes, like FD interest, with TDS once the bank's yearly threshold is crossed.
RD or SIP?
An RD gives a guaranteed rate; a SIP in a mutual fund can earn more or less depending on the market. Use the SIP Calculator to compare.