Recurring Deposit (RD) Calculator
Maturity value of a monthly recurring deposit with quarterly compounding. Calculated instantly in your browser.
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Maturity amount
₹3,54,954
- Total deposits
- ₹3,00,000
- Total interest
- ₹54,954
- Instalments
- 60
Year-by-year RD growth
| Year | Deposited | Interest earned | Value |
|---|---|---|---|
| 1 | ₹60,000 | ₹2,143 | ₹62,143 |
| 2 | ₹1,20,000 | ₹8,425 | ₹1,28,425 |
| 3 | ₹1,80,000 | ₹19,122 | ₹1,99,122 |
| 4 | ₹2,40,000 | ₹34,527 | ₹2,74,527 |
| 5 | ₹3,00,000 | ₹54,954 | ₹3,54,954 |
How it's calculated
M = Σ D × (1 + r ÷ 4)^(4 × tₖ) for k = 1…N
tₖ = (N − k + 1) ÷ 12 years
Quarterly compounding is converted to an equivalent monthly factor g = (1 + r/4)^(1/3), which turns the sum into a closed form: M = D × g × (gᴺ − 1) ÷ (g − 1).
Assumptions
- Instalments are paid at the start of each month.
- Interest is compounded quarterly; slight differences from your bank are possible because banks use fixed day-count conventions.
How to use this calculator
- Enter monthly deposit. Set the monthly instalment.
- Enter rate. Use the bank's current RD rate.
- Set tenure. Choose the tenure in years.
- Read result. See maturity value and total interest.
Frequently asked questions
How is RD maturity calculated in India?
Banks compound RD interest quarterly. Each monthly instalment earns interest for the months it remains deposited: M = Σ D × (1 + r/4)^(4 × t), where t is the remaining time in years for that instalment.
What is the minimum RD tenure?
Most banks offer RDs from 6 months to 10 years. Post office RDs run for 5 years.
RD or SIP: which should I choose?
RD gives guaranteed, fixed returns and suits short goals or low risk appetite. SIP in equity funds can earn more over long periods but with market risk.
Is RD interest taxable?
Yes, it is taxed at your slab rate and TDS may apply above the bank's threshold. This calculator shows pre-tax maturity.
What happens if I miss an RD instalment?
Banks charge a small penalty per missed instalment (often ₹1.5-₹2 per ₹100), and continued default can lead to closure. This calculator assumes all instalments are paid on time.
Is the RD rate fixed?
Yes. The rate applicable on the day you open the RD stays fixed for the entire tenure, even if bank rates change later.
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Results from FinanceChacha are estimates for planning and education, not financial, tax or legal advice.