How it works
Enter the amount you will deposit every month, the yearly interest rate and the tenure in years or months.
A deposit is made at the start of each month. Interest is compounded every quarter, which is how banks in India usually work out recurring deposits, so each deposit earns interest for the months it stays in.
The result shows the total you deposit, the interest earned and the maturity amount.
The formula
M = R × ((1 + i) ^ n − 1) ÷ (1 − (1 + i) ^ (−1/3))
R is the monthly deposit, i is the quarterly rate (the yearly rate ÷ 4, as a decimal), and n is the number of quarters (months ÷ 3). This adds up each monthly deposit grown for the time it stays in.
A worked example
A monthly deposit of ₹5,000 at 6.5% a year for 5 years: you deposit ₹3,00,000 in total, and the deposit matures at about ₹3,54,954, of which ₹54,954 is interest.
Frequently asked questions
How is RD interest calculated?
Each monthly deposit earns interest from the day it is made until maturity, with interest added every quarter. The maturity amount is the sum of all deposits and their interest.
What if I miss a monthly deposit?
Banks usually charge a small penalty for a late instalment, and too many missed ones can close the account. This calculator assumes every deposit is made on time.
How is an RD different from a SIP?
An RD pays a fixed, known interest rate. A SIP puts money in market-linked funds, where returns are not guaranteed and can be lower or higher than the rate you assume.
Is RD interest taxable?
Yes. The interest is added to your income and taxed at your slab rate, and banks may deduct TDS above a yearly limit.