Recurring Deposit Interest Calculator
Use this free recurring deposit interest calculator to find out how much a monthly RD will be worth at maturity. Enter your monthly deposit, the bank interest rate and the tenure, and you will instantly see the total deposited, the maturity value and the interest earned, using the quarterly compounding method banks use in India.
An RD is a simple way to save a fixed amount every month, so this calculator is useful whether you are starting your first deposit, comparing bank offers, or checking how a longer tenure changes the final amount. Try different deposits and rates to see the effect before you open an account.
Table of Contents
What is a Recurring Deposit Interest Calculator?
A recurring deposit, or RD, is a bank account in which you deposit a fixed sum every month for a chosen tenure. The bank pays interest on each instalment, compounded quarterly, so earlier instalments earn interest for longer than later ones. This calculator applies the standard bank RD formula to estimate the maturity value before you commit.
Standard bank RD formula, quarterly compounding: Maturity = P x [((1+i)^n – 1) / (1 – (1+i)^(-1/3))], where i = annual rate/400 and n = quarters. Total deposited = P x 12 x years. Interest = Maturity – deposited.
How to Use the Recurring Deposit Interest Calculator (Step by Step)
- Enter monthly deposit.
- Enter bank RD rate per year.
- Enter tenure in years.
- Press Calculate.
Example Calculation
Rs 5,000/month, 7%, 5 years: Deposited Rs 3,00,000; Maturity Rs 3,59,663.95; Interest Rs 59,663.95.
Features
- Quarterly compounding as banks use.
- Deposited, maturity and interest shown together.
- Any tenure.
- Free and instant.
Benefits
- Plan monthly saving goals.
- Compare bank RD offers.
- Plan salary-saving.
- No spreadsheet needed.
Final Thoughts
A recurring deposit rewards patience: small monthly deposits, left for the full tenure, can grow into a useful lump sum. Use this calculator to set a realistic monthly amount, compare rates, and keep your saving habit on track. For related tools, try the TDEE Calculator and the SIP Calculator.
Frequently Asked Questions (FAQs)
How is RD interest calculated in banks?
Indian banks compound RD interest quarterly. Each monthly instalment earns interest for the time it stays invested, which the standard RD maturity formula captures in one calculation.
Is RD interest taxable?
Yes – RD interest is taxed at your income-tax slab rate, and banks deduct TDS when interest crosses the notified threshold in a financial year.
What happens if I miss an RD instalment?
Banks levy a small penalty per month of delay, and repeated defaults can lead to closure of the account. The maturity then is lower than this estimate.
RD or FD – which gives more?
Rates are usually similar. RD suits monthly saving from salary; FD suits investing a lump sum. Compare the rate for your exact tenure before choosing.