RD Calculator
Work out the maturity value of a recurring deposit, using the same quarterly-compounding formula banks use.
This calculator provides an estimate assuming a fixed rate for the full tenure; actual bank terms and TDS may affect your real return. See our Disclaimer.
Last reviewed: — formula and worked example re-checked.
The formula
RD interest in India is compounded quarterly, but deposits are monthly — so each instalment earns interest for a different length of time depending on when it was deposited. Banks use a standard formula (from the Indian Banks' Association) rather than calculating each instalment separately:
M = P × [(1 + i)^n − 1] ÷ [1 − (1 + i)^(−1/3)], where P is the monthly instalment, i is the annual rate divided by 400 (the quarterly rate as a decimal), and n is the number of quarters in the tenure. Maturity value is M; interest earned is M minus everything you deposited.
Worked example
₹5,000 a month for 12 months (4 quarters) at 8% p.a.: maturity ≈ ₹62,647, against ₹60,000 deposited — interest earned ≈ ₹2,647. This matches the standard example banks themselves publish for this formula.
Limitations
This assumes every instalment is paid on time and the rate stays fixed for the whole tenure, which is how a standard RD works — a missed instalment usually incurs a penalty that this calculator doesn't model. It also doesn't account for TDS on the interest earned.
Frequently asked questions
Why isn't the interest just simple interest on the total deposited?
Because each monthly instalment sits in the account for a different length of time and compounds quarterly, not just once at the end — an instalment made in month 1 earns interest for the full tenure, while one made in the last month barely earns any. The formula accounts for this automatically.
What happens if I miss a monthly instalment?
Most banks charge a small penalty for a missed or late RD instalment, and some may close the account if multiple instalments are missed. This calculator assumes every instalment is paid on schedule.