Recurring deposit (RD) calculator
A recurring deposit lets you save a fixed amount every month at a fixed rate. This calculator shows what you will have at maturity.
How to use this calculator
- Enter the monthly deposit.
- Enter the yearly interest rate.
- Enter the number of months.
- Read the maturity amount, total deposited and interest earned.
Worked examples
Example 1
₹10,000 a month for 60 months at 6.5%.
You enter
| Monthly deposit | ₹10,000 |
|---|---|
| Interest rate (per year) | 6.5% |
| Months | 60 |
You get
| Maturity amount | ₹7,09,908 |
|---|---|
| Total deposited | ₹6,00,000 |
| Interest earned | ₹1,09,908 |
Example 2
₹5,000 a month for 24 months at 7%.
You enter
| Monthly deposit | ₹5,000 |
|---|---|
| Interest rate (per year) | 7% |
| Months | 24 |
You get
| Maturity amount | ₹1,29,099 |
|---|---|
| Total deposited | ₹1,20,000 |
| Interest earned | ₹9,099 |
How it works
Each monthly deposit earns interest for the months it stays in the account, so early deposits earn more than late ones. Banks usually compound RD interest quarterly.
Banks may round slightly differently, so your passbook can differ by a few rupees.
Formula
Maturity = sum over every instalment of deposit x (1 + r / 4)^(4 x months remaining / 12).
Common questions
Is RD interest taxable?
Yes, like other bank interest.
What if I miss a deposit?
Banks charge a small penalty; this tool assumes none is missed.
RD or SIP?
An RD is a fixed, low-risk return; a SIP in market-linked funds can earn more or less.
Learn more
Read the lesson Money, inflation and interest on pusaram.com for the ideas behind this calculator.
Calculators give estimates for learning and planning. They are not financial, tax, legal or medical advice, and results depend entirely on the numbers you enter. Check rates, limits and rules with an official source or a qualified professional before acting.