RD Calculator

The RD Calculator works out the maturity value of a Recurring Deposit (RD) — the lump sum you receive after depositing a fixed amount every month for a set tenure. It uses the same monthly-balance, quarterly-compounding method that banks apply on real RD statements, then shows your total interest, a quarter-by-quarter interest ledger, a principal-vs-interest growth chart, and exactly how much extra you earn from compounding compared with plain simple interest.

What is a Recurring Deposit?

A recurring deposit is a savings account where you commit to depositing the same amount of money every month for a fixed period (the tenure). The bank pays a fixed rate of interest, compounded quarterly, and returns your accumulated deposits plus interest as a single maturity amount at the end. RDs are a disciplined way to build savings from a regular monthly income, and they typically pay the same rate as a fixed deposit.

RD Maturity Formula

The standard closed-form formula for an RD with quarterly compounding is:

where R is the monthly deposit, i is the quarterly interest rate (annual rate ÷ 4 ÷ 100), and n is the number of quarters in the tenure. This calculator goes one step further than the formula: it simulates the deposit month by month, accruing interest on the running balance each month and crediting (compounding) it every quarter — which is exactly how banks compute the figure on your passbook. The two approaches agree very closely; the simulation is simply more transparent because every quarter's interest credit is shown.

How RD Interest Is Calculated

Three things drive your maturity value:

1. Monthly accrual: Each month your new deposit is added to the balance, and interest is accrued on that running balance at the monthly rate (annual rate ÷ 12).
2. Quarterly compounding: Every three months the accrued interest is credited to the balance, so from then on it also earns interest. This compounding is what makes an RD pay slightly more than simple interest.
3. Maturity: At the end of the tenure your maturity value equals all your monthly deposits plus every quarter's compounded interest.

RD vs FD: Which Earns More?

For the same total money and rate, an FD earns more because the whole amount earns interest from the start, while RD contributions only start earning once they are deposited. An RD wins on convenience — it turns a monthly habit into a meaningful lump sum.

What Affects Your RD Maturity Value?

How to Use This Calculator

1. Enter your monthly deposit: Pick your currency and type the fixed amount you will deposit each month.
2. Enter the rate and tenure: Add the annual interest rate your bank offers and choose the tenure in years and months.
3. Choose compounding: Leave it on Quarterly for a standard RD, or switch to monthly, half-yearly, or yearly.
4. Click Calculate: Review your maturity value, total interest, the growth chart, the quarter-by-quarter ledger, and your compounding advantage.

Frequently Asked Questions

What is a recurring deposit (RD)?

A recurring deposit is a savings product where you deposit a fixed amount every month for a fixed tenure and earn a fixed rate of interest. At the end of the tenure you receive your total deposits plus the accumulated interest as a single maturity amount. It is popular for building savings through small, regular contributions.

How is RD maturity calculated?

Interest accrues on your running balance every month and is compounded quarterly, meaning the interest earned is added back to the balance every three months so it starts earning interest too. The maturity value equals your total deposits plus all the compounded interest credited over the tenure.

Why is RD interest compounded quarterly?

Most banks credit and compound recurring deposit interest once every quarter (every three months). This is the standard convention. Compounding quarterly means you earn a little more than simple interest because each quarter's interest starts earning interest in the following quarters.

Is RD interest taxable?

In most countries the interest earned on a recurring deposit is taxable as income. Banks may also deduct tax at source if the interest crosses a threshold. This calculator shows the pre-tax maturity value, so your in-hand amount may be slightly lower after any applicable tax.

What is the difference between an RD and an FD?

A fixed deposit (FD) takes a single lump-sum deposit at the start, while a recurring deposit (RD) takes equal monthly deposits over the tenure. Because RD money is invested gradually, the total interest on an RD is lower than on an FD of the same total amount and rate, but an RD is easier to fund from a monthly salary.

Can I change my monthly deposit during the RD?

Traditional recurring deposits keep the monthly deposit fixed for the whole tenure. If you want a different amount you usually open a new RD. This calculator assumes a constant monthly deposit; to model a change, calculate each segment separately and add the results.

Additional Resources

• Compound Interest - Wikipedia