An RD calculator shows what a fixed monthly deposit in a recurring deposit will grow to by maturity.
RD Calculator
Find the maturity value of a recurring deposit with quarterly compounding, as banks and the post office calculate it.
- Total deposited
- ₹3,00,000₹3 lakh
- Interest earned
- ₹59,664
- RD interest is taxable at your slab rate and TDS may apply. Banks may round the maturity value slightly differently.
Results are estimates for educational purposes only and are not financial, tax or legal advice. For more details, do consult a lawyer or a subject-matter expert.
RD value over time
View chart data as a table
| Year | Deposited | Value |
|---|---|---|
| 1 | ₹60,000 | ₹62,311 |
| 2 | ₹1,20,000 | ₹1,29,099 |
| 3 | ₹1,80,000 | ₹2,00,686 |
| 4 | ₹2,40,000 | ₹2,77,418 |
| 5 | ₹3,00,000 | ₹3,59,664 |
Year-wise RD value
| Year | Deposited | Value |
|---|---|---|
| 1.00 | ₹60,000 | ₹62,310.66 |
| 2.00 | ₹1,20,000 | ₹1,29,098.90 |
| 3.00 | ₹1,80,000 | ₹2,00,686.49 |
| 4.00 | ₹2,40,000 | ₹2,77,418.28 |
| 5.00 | ₹3,00,000 | ₹3,59,663.95 |
Explain this result
Banks compound RD interest every quarter. Each monthly deposit earns interest for the months it stays with the bank, so the first instalment earns the most:
M = Σ R × (1 + r/4)k/3, for k = 60 months down to 1, where R is your monthly deposit and r the yearly rate (7.00%).
You deposit ₹3,00,000 and receive ₹3,59,664 – interest of ₹59,664.
Frequently asked questions
How do banks calculate RD interest?
With quarterly compounding: M = R × ((1+i)^n − 1) ÷ (1 − (1+i)^(−1/3)), where i is the quarterly rate and n the number of quarters.
What happens if I miss an RD instalment?
Most banks charge a small penalty and may close the RD after several missed instalments. Check your bank's terms.
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Worked example
Saving ₹5,000 a month for 5 years at 7% gives about ₹3,59,664 at maturity – ₹3 lakh deposited plus about ₹59,664 interest.
Tips
- Missing an instalment can attract a small penalty; set up auto-debit.
- RD interest is taxable at your slab rate, like FD interest.
- For long goals (5+ years), compare with an equity SIP using the SIP calculator.