Recurring Deposit Calculator
Calculate Your RD Maturity Value

Calculate your recurring deposit returns and maturity value instantly with our free RD calculator.
Enter your monthly investment amount, interest rate, and time period to see exactly
how much your savings will grow with compound interest.

₹
%
Check your Results Here!
Invested amount
₹ 36,00,000
Est. returns
₹ 3,51,422
Total value
₹ 39,51,422

What is a Recurring Deposit and How Does It Work?

A Recurring Deposit (RD) is a savings scheme offered by banks where you deposit a fixed amount every month for a predetermined period. At the end of the maturity period, you receive the total of all your deposits plus the interest earned. RDs are ideal for disciplined saving and offer guaranteed returns based on the interest rate.

The interest on RDs is typically calculated on a quarterly basis and compounded over the investment period. The longer your investment period and the higher your monthly deposit, the more returns you can generate. This calculator helps you determine exactly how much your recurring deposits will grow.

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Monthly Investment

The fixed amount you invest every month in your RD account.

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Interest Rate

The annual interest rate (p.a) offered on your recurring deposit.

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Time Period

The duration for which you maintain the RD account, typically ranging from 6 months to 10 years.

Benefits of Recurring Deposits

Recurring deposits offer several advantages for savers who want to build wealth systematically. They encourage regular saving habits and provide guaranteed returns.

Guaranteed Returns

RDs offer fixed interest rates, ensuring predictable returns regardless of market conditions.

Example: An RD with 6% p.a. will give you exactly 6% returns annually.

Disciplined Saving

The fixed monthly commitment encourages regular saving habits and builds financial discipline.

Example: Saving ₹1,00,000 every month for 3 years results in ₹36,00,000 of your own money plus interest.

How to Use This Recurring Deposit Calculator

Using our RD calculator is simple. Enter your monthly investment amount, the annual interest rate offered by your bank, and the investment period. The calculator instantly shows your invested amount, estimated returns, and total maturity value.

1
Enter Monthly Investment
Input the fixed amount you plan to invest every month in your RD.
2
Enter the Interest Rate
Input the annual interest rate (p.a) offered by your bank on the RD.
3
Select Time Period
Choose your investment period in years or months.
4
Get Instant Results
See your invested amount, estimated returns, and total maturity value instantly.

Recurring Deposit Calculation Formula

The RD maturity value is calculated using a compound interest formula that accounts for quarterly compounding, which is the standard practice in India.

Maturity Value Formula

MV = P × [((1 + r/100)^n - 1) / (1 - (1 + r/100)^(-1/q))]
Where:
P = Monthly investment amount
r = Annual interest rate (percentage)
n = Number of quarters (Total months ÷ 3)
q = 4 (for quarterly compounding)

Invested Amount Formula

Invested Amount = Monthly Investment × Number of Months

Estimated Returns Formula

Estimated Returns = Maturity Value - Invested Amount
This represents your earnings from compound interest.

Understanding RD Interest Rates

Interest rates on RDs vary depending on the bank and the tenure of your investment. Typically, longer tenure RDs offer higher interest rates. Here's a general guide:

Tenure Typical Interest Rate Compounding Frequency Notes
6 Months 3.5% - 4% Quarterly Shortest tenure
1 Year 4% - 5% Quarterly Most popular
3 Years 5% - 6% Quarterly Mid-term option
5 Years 5.5% - 6.5% Quarterly Long-term option

Frequently Asked Questions

Interest on recurring deposits is typically calculated and compounded on a quarterly basis in India. This means the interest is computed every three months and added to your principal amount.

Yes, most banks allow premature withdrawal of RD, but you may face a penalty. The penalty typically ranges from 0.5% to 1% of your total deposits plus interest. It's best to check with your bank for specific terms.

If you miss a monthly payment, you can usually make it up within a certain period (typically 30 days) without penalty. However, if not deposited within the grace period, your RD account may be closed.

Yes, most banks have a minimum monthly investment requirement for RDs, typically ranging from ₹100 to ₹1,000 depending on the bank. Check with your bank for their specific minimum amount requirements.

An RD requires regular monthly deposits, while an FD is a lump-sum investment. RDs are better for systematic saving, while FDs are ideal if you have a large sum available upfront. Both offer similar interest rates.