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.
More worked examples
₹2,000 a month for 24 months at 7%: maturity 51,639.56 against 48,000 deposited, so interest is 3,639.56. ₹10,000 a month for 60 months at 6.5%: maturity 7,09,908.20 against 6,00,000 deposited, so interest is 1,09,908.20.
The result scales with the instalment. ₹5,000 a month is 2.5 times ₹2,000, so at 7% for 24 months the maturity is 2.5 times as large: 1,29,098.90, with 9,098.90 of interest on 1,20,000 deposited.
Tenures that are not whole quarters
The tenure is in months and does not have to be a multiple of 3. The formula simply uses months ÷ 3 quarters, so 10 months is 3.33 quarters. ₹1,000 a month for 10 months at 7% gives 10,324.59, which is 324.59 of interest. A one-month RD of ₹1,000 at 7% gives 1,005.80.
How to read the result
The three figures are shown as plain numbers with two decimals, with no currency symbol or thousands separators. Enter an interest rate above zero. The monthly instalment and the tenure must also be greater than zero, and a negative rate shows "Please enter positive values."
Guide
- FD vs RD vs PPF: How Each Compounds — How each of the three compounds and gets its rate, and what the calculators simplify. A comparison of mechanics, not a ranking.
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.
Can I enter a tenure like 10 or 18 months?
Yes. Any number of months above zero works, and the calculator uses months ÷ 3 quarters. A 10-month RD of ₹1,000 at 7% matures at 10,324.59.
Why can my bank's maturity amount differ slightly?
This calculator applies one closed formula with no rounding between quarters and no deposit dates. A bank may round each quarter's interest or count days differently, so a small difference is normal.
Does a longer tenure earn a higher rate here?
No. The rate is the single figure you type, and it applies to the whole tenure. If your bank pays different rates for different tenures, enter the rate for the tenure you chose.