What is a recurring deposit and who is it for?

An RD is a fixed-term bank deposit you fund with equal monthly instalments instead of a single lumpsum. The interest rate is locked in when you open it, the return is guaranteed by the bank, and the whole balance — deposits plus compounded interest — is paid out at maturity. It suits salaried savers who want FD-like safety without needing a large amount up front.

What formula does this calculator use?

It compounds monthly: each month the balance grows by your deposit plus one month of interest, balance = (balance + deposit) × (1 + annual rate ÷ 12). Repeated over the term this equals the annuity-due formula D × ((1 + i)^n − 1) ÷ i × (1 + i), which credits each instalment at the start of its month.

Why does my bank quote a slightly different maturity?

Indian banks conventionally compound RD interest quarterly, while this tool compounds monthly, and banks also align interest to actual instalment dates. The difference is small — usually a fraction of a percent — but the bank’s printed figure is the binding one.

Is RD interest taxable?

Yes. RD interest is fully taxable at your income-tax slab rate, and banks deduct TDS once your total interest for the year crosses the prescribed threshold. This calculator shows gross interest with no tax deducted.

What happens if I miss an instalment or close the RD early?

Banks typically charge a small penalty for delayed instalments, and premature closure usually earns a lower interest rate than contracted. Neither is modeled here — the estimate assumes every deposit is paid on time for the full term.

How is an RD different from an FD or a SIP?

An FD invests one lumpsum for the whole term; an RD spreads the commitment into monthly deposits at a bank-guaranteed rate; a SIP also invests monthly but into market-linked mutual funds, where returns vary and are not guaranteed. Use the FD or SIP calculator to compare the same cash flows.

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RD Calculator (Recurring Deposit)

Calculate recurring deposit maturity from a monthly deposit and rate.

Runs in your browser — files never leave your device

Monthly deposit₹Interest rate%Months

Maturity

₹62,324.38

Invested

₹60,000

Interest

₹2,324.38

How it works

A recurring deposit (RD) is the bank product for people who can save a fixed sum every month rather than invest a lumpsum: you commit to a monthly instalment for a fixed term, the bank pays an interest rate locked in on day one, and everything comes back as a single maturity amount. This calculator estimates that maturity from three inputs — monthly deposit, annual interest rate and term in months — and splits the result into the amount you invested and the interest you earned.

The tool builds the balance month by month. Each month it adds your deposit and then applies one month of interest to the whole balance: balance = (balance + deposit) × (1 + i), where i is the monthly rate — the annual rate divided by 12. Running that loop for every month of the term is mathematically the annuity-due formula M = D × ((1 + i)^n − 1) ÷ i × (1 + i): each instalment is credited at the start of its month, so even the final deposit earns one month of interest. Total invested is simply deposit × months, interest is maturity minus invested, and results are rounded to the paisa.

Worked example with the defaults: ₹5,000 a month at 7% for 12 months. The monthly rate is 7% ÷ 12 ≈ 0.5833%. The first instalment compounds twelve times, the last one once, and the loop produces a maturity of ₹62,324.38 on ₹60,000 invested — ₹2,324.38 of interest. Keep the same deposit and rate going for 60 months and maturity reaches ₹3,60,052.63, of which ₹60,052.63 is interest: the interest share grows with tenure because the earliest instalments spend the longest time compounding.

Two things to know about the approximation. Indian banks conventionally compound RD interest quarterly, while this tool compounds monthly, so the bank’s printed maturity can differ from this estimate by a small margin — typically a fraction of a percent. And the tool models the happy path only: TDS on interest, penalties for missed instalments and premature-withdrawal haircuts are not included. Treat the output as a close planning estimate and take the exact maturity figure from the bank’s deposit advice.

Frequently asked questions

What is a recurring deposit and who is it for?: An RD is a fixed-term bank deposit you fund with equal monthly instalments instead of a single lumpsum. The interest rate is locked in when you open it, the return is guaranteed by the bank, and the whole balance — deposits plus compounded interest — is paid out at maturity. It suits salaried savers who want FD-like safety without needing a large amount up front.
What formula does this calculator use?: It compounds monthly: each month the balance grows by your deposit plus one month of interest, balance = (balance + deposit) × (1 + annual rate ÷ 12). Repeated over the term this equals the annuity-due formula D × ((1 + i)^n − 1) ÷ i × (1 + i), which credits each instalment at the start of its month.
Why does my bank quote a slightly different maturity?: Indian banks conventionally compound RD interest quarterly, while this tool compounds monthly, and banks also align interest to actual instalment dates. The difference is small — usually a fraction of a percent — but the bank’s printed figure is the binding one.
Is RD interest taxable?: Yes. RD interest is fully taxable at your income-tax slab rate, and banks deduct TDS once your total interest for the year crosses the prescribed threshold. This calculator shows gross interest with no tax deducted.
What happens if I miss an instalment or close the RD early?: Banks typically charge a small penalty for delayed instalments, and premature closure usually earns a lower interest rate than contracted. Neither is modeled here — the estimate assumes every deposit is paid on time for the full term.
How is an RD different from an FD or a SIP?: An FD invests one lumpsum for the whole term; an RD spreads the commitment into monthly deposits at a bank-guaranteed rate; a SIP also invests monthly but into market-linked mutual funds, where returns vary and are not guaranteed. Use the FD or SIP calculator to compare the same cash flows.
Is my data uploaded?: No — the maths runs entirely in your browser; nothing you type is sent to a server.

RD Calculator (Recurring Deposit)

How it works

Frequently asked questions

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