Free RD Calculator – Recurring Deposit Maturity & Interest

How the RD Calculator Handles Monthly Deposits

A recurring deposit takes a fixed sum from you every month for an agreed tenure and pays it all back with interest at the end. This calculator projects that final figure from three inputs: your monthly deposit, the annual rate, and the tenure in months. It reports the maturity value, the total you deposited, and the interest the bank added. The distinction from a fixed deposit matters — in an FD one lump sum earns interest for the whole term, whereas in an RD each instalment earns interest only for the months remaining after it arrives. Salaried savers building a habit, parents setting aside money for school fees due in two years, and anyone who cannot spare a lump sum but can commit ₹3,000 a month are the natural users. The maturity value is the sum of every instalment compounded separately for its own remaining period. Indian banks compound RD interest quarterly, so the tool converts each deposit's remaining months into quarters and applies the quarterly rate: instalment value = monthly deposit × (1 + annual rate ÷ 400)^(remaining months ÷ 3). Add those values across all instalments and you have the maturity amount. Total deposited is the monthly amount times the number of months, and interest is the difference. The asymmetry is built in: the first deposit compounds for the entire tenure while the final one gets barely a month, which is why an RD always earns less than an FD of the same total value and rate. Here is a real case, worked through. Deposit ₹5,000 a month for 60 months at 7 per cent. The quarterly rate is 1.75 per cent. The very first instalment has 60 months, or 20 quarters, remaining and grows to 5,000 × 1.0175^20 = ₹7,073.89. The final instalment has one month, a third of a quarter, and grows to only ₹5,029. Summing all 60 instalments gives a maturity value of about ₹3,59,664. You deposited ₹3,00,000 over those five years, so the interest is roughly ₹59,664. Notice that ₹3 lakh placed in a single five-year FD at the same 7 per cent would have matured at about ₹4,24,433 — the RD earns less because most of your money arrives late. The planning uses are practical. Someone saving for a ₹80,000 laptop in 18 months can adjust the monthly figure until the maturity clears the target. A family expecting school admission fees in three years puts ₹2,000 a month at 6.5 per cent and sees ₹79,649 against ₹72,000 deposited, which is enough to cover a fee rise. A saver comparing an RD against a monthly SIP can weigh the RD's guaranteed return against the mutual fund's higher but uncertain one. And a person who has just started earning can test how a ₹1,000 versus ₹2,500 monthly commitment changes the outcome before locking into either. The cautions are worth reading before you open one. Missing instalments usually triggers a small penalty and some banks close the account after repeated defaults, so pick an amount you can sustain rather than the largest you can currently afford. Premature closure attracts a penalty and interest recalculated at the rate for the period completed, which can wipe out much of the gain on a short-lived RD. The figure here is gross: RD interest is fully taxable at your slab rate and banks deduct TDS once annual interest crosses the threshold, so budget for a lower net amount. This is a projection aid, not financial advice — confirm current rates and terms with your bank before opening an account. Everything runs in your browser, so your figures are never uploaded or stored.

RD Calculator Formula & Method

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