RD Calculator
Calculate Recurring Deposit maturity from monthly deposit, rate, and tenure.
Written by Anil Gautam · Updated
How is RD maturity calculated?
Most Indian banks compound recurring deposit interest every quarter, and the tool uses that method. Each monthly instalment is treated as a separate deposit that earns interest only for the months left until maturity: maturity = the sum of P × (1 + r ÷ 4)^(months left ÷ 3) across all instalments, where P is the instalment and r the annual rate. Quarterly compounding turns a 6.5% rate into about 6.66% a year on money that stays in for a full year.
With the default ₹5,000 a month at 6.5% for 60 months, you pay in ₹3,00,000 and the maturity value is ₹3,54,954, so interest is ₹54,954. The first instalment compounds for 20 quarters and grows to about ₹6,902, while the last one earns for a single month and reaches about ₹5,027. At the same rate, a one-year RD of ₹5,000 a month matures at ₹62,143.
Why is RD interest lower than rate × total deposits?
A quick estimate multiplies the rate by the full amount and the years: 6.5% × ₹3 lakh × 5 = ₹97,500. That treats all ₹3 lakh as invested for five years, when the money arrives a month at a time and the average instalment is invested for about half the term. The real interest for the example is ₹54,954. If you already hold the full sum, the FD Calculator shows the one-time alternative: ₹3 lakh for five years at 6.5%, compounded quarterly, grows to ₹4,14,126.
What does the RD calculator assume?
Every instalment is paid on time, on the same day each month, at one fixed rate for the whole tenure. Missed instalments, penalties and premature closure are not modelled, and the maturity value is before any tax on the interest. The sliders run from ₹100 to ₹1 lakh a month, 3% to 12% a year and 6 to 120 months. A tenure that is not a multiple of three months uses fractional quarters, so in a 61-month RD the first instalment compounds for 20 and a third quarters.
Bank RD rates usually depend on the tenure you pick and are higher for senior citizens at many banks, so enter the exact rate your bank quotes for your term. For monthly investing where returns are not fixed, such as mutual fund SIPs, the SIP Calculator applies monthly compounding at an assumed return.