RD Calculator
Find the maturity amount and interest on a recurring deposit with monthly instalments, compounded quarterly.
Maturity amount
1.29 lakhReal bank maturity values can differ by a few rupees, depending on how your bank rounds interest and counts instalment dates.
Interest is taxable and TDS may apply. Check current TDS rules on the Income Tax Department website.
Year-wise growth
| Year | Deposited | Interest | Balance |
|---|---|---|---|
| 1 | ₹60,000 | ₹2,311 | ₹62,311 |
| 2 | ₹1,20,000 | ₹9,099 | ₹1,29,099 |
Balance at the end of each year, counted from your first instalment.
How it works
This calculator uses quarterly compounding with this convention:
- You pay the same instalment R at the start of every month, on time, for N months.
- Each instalment earns interest compounded every quarter for the months it stays until maturity. A month counts as one third of a quarter, so an instalment that stays k months grows by (1 + i)k/3.
- The first instalment stays N months and the last one stays 1 month. The maturity amount is the sum of all of them.
M = R × ((1 + i)n − 1) ÷ (1 − (1 + i)−1/3)
- M = maturity amount
- R = monthly instalment
- i = interest rate per quarter = yearly rate ÷ 400
- n = tenure in quarters = months ÷ 3
This is the same as adding up R × (1 + i)k/3 for k = N, N − 1, …, 1. Interest earned = M − R × N. At 0% interest, the maturity amount is simply R × N. Results are shown rounded to the nearest rupee.
Worked example
You deposit ₹5,000 every month for 24 months at7% a year.
- Rate per quarter i = 7 ÷ 400 = 0.0175
- Tenure in quarters n = 24 ÷ 3 = 8
- (1 + i)8 − 1 = 0.14888178
- 1 − (1 + i)−1/3 = 0.00576619
- M = ₹5,000 × 0.14888178 ÷ 0.00576619 = ₹1,29,098.90
- Total deposited = ₹5,000 × 24 = ₹1,20,000
- Interest earned = ₹1,29,098.90 − ₹1,20,000 = ₹9,098.90
Check by instalment: the first ₹5,000 grows to ₹5,744.41 over 24 months, and the last grows to ₹5,029.00 over 1 month. Adding all 24 instalments gives the same₹1,29,098.90.
Frequently asked questions
What is a recurring deposit (RD)?
A recurring deposit lets you save a fixed amount every month for a fixed period at an interest rate agreed when you open it. At maturity you get back all your instalments plus the interest earned.
How is RD interest calculated?
This calculator compounds interest quarterly. Each monthly instalment earns interest from the month it is paid until maturity, so the first instalment earns interest for the whole tenure and the last one for just one month. Maturity = R × ((1 + i)^n − 1) ÷ (1 − (1 + i)^(−1/3)), where i is the yearly rate ÷ 400 and n is the tenure in quarters.
Why is RD interest lower than FD interest on the same total amount?
In an FD the whole amount earns interest from day one. In an RD, each instalment is added month by month, so on average your money is invested for about half the tenure. For example, ₹5,000 a month for 24 months at 7% earns ₹9,099, while ₹1,20,000 deposited at the start for the same period with quarterly compounding would earn ₹17,866.
What happens if I miss an instalment?
Banks set their own rules for missed or late RD instalments, which can include a penalty. This calculator assumes every instalment is paid on time at the start of each month. Check your bank's RD terms for what applies to you.
Can I close my RD before maturity?
Usually yes, but a penalty may apply. For deposits, RBI rules let banks charge a penalty for premature withdrawal under their Board-approved policy, and the penalty must be explained to you when you open the deposit. Check your bank's RD terms for the exact rule. This calculator assumes you hold the RD until maturity.
Is RD interest taxable?
Yes, interest on recurring deposits is taxable, and tax may be deducted at source (TDS). Limits and rates are set by tax law and can change, so check current TDS and tax rules on the Income Tax Department website. The amounts shown here are before any tax.
Why is my bank's maturity amount slightly different?
Banks may round interest each quarter, count interest from the actual date you pay each instalment, or treat tenures that are not a whole number of quarters differently. Small differences are normal. Your RD receipt or passbook shows the bank's exact maturity amount.