Recurring Deposit Calculator
Calculate the maturity amount and total interest earned on a recurring deposit (RD), given the monthly deposit amount, interest rate, and tenure.
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Your result
₹1,29,098.90
Maturity amount
AI explanation
Formula
Maturity = R × ((1+i)^n − 1) / (1 − (1+i)^(−1/3)), i = Rate/4/100 (quarterly), n = Tenure in months / 3Worked example
₹5,000/month RD at 7% for 24 months
| Field | Value |
|---|---|
| Monthly deposit | 5000 |
| Interest rate (per annum) | 7 |
| Tenure (months) | 24 |
| Maturity amount | 129098.9 |
| Total amount deposited | 120000 |
| Total interest earned | 9098.9 |
Assumptions
- Uses the standard Indian bank RD formula, where interest is compounded quarterly on the cumulative balance while deposits are made monthly.
- Does not account for TDS deducted on RD interest above the threshold set by the Income Tax Department, or missed-installment penalties.
Frequently asked questions
How is RD interest calculated differently from FD interest?
Both typically compound quarterly, but an RD involves a fresh monthly deposit, so each installment earns interest for a different length of time — the formula accounts for this by using a fractional exponent to represent the average timing of monthly deposits within each quarter.
What happens if I miss an RD installment?
Most banks charge a penalty (typically a small percentage of the missed installment) for late or missed RD payments — check your bank's specific penalty terms.
Is RD interest taxable?
Yes, RD interest is fully taxable as "Income from Other Sources" at your applicable income tax slab rate, and banks deduct TDS if interest exceeds the threshold set by the Income Tax Department in a financial year.
Related calculators
Sources
- Reserve Bank of India — Master Direction on Interest Rate on Deposits — Reserve Bank of India. Effective 03-03-2016, reviewed 12-09-2026.
This calculator uses the standard quarterly-compounding RD formula and does not include TDS, missed-installment penalties, or bank-specific terms. Actual maturity amount offered by a bank may differ slightly based on its specific compounding convention.
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