Recurring Deposit (RD) Calculator
Work out the maturity value of a recurring deposit.
Monthly Deposit
Interest Rate (p.a)
Tenure
Maturity
₹1,28,125
Maturity Value
₹1,28,125
Total Deposited
₹1,20,000
Total Interest Earned
₹8,125
How this calculator works
Each monthly instalment in a Recurring Deposit starts earning interest from the date it's deposited, not from day one of the RD — so the first instalment earns interest for close to the full tenure, while the last instalment earns almost none. This calculator uses the standard RD interest formula, which sums each instalment's interest based on how many months it remained on deposit, the same approach most Indian banks use to compute RD payouts.
Worked example
Depositing ₹5,000 a month for 5 years (60 months) at 7% gives a total invested amount of ₹3,00,000 and roughly ₹53,375 in interest, for a maturity value of about ₹3,53,375.
Why RD interest looks different from FD interest
An FD compounds one lump sum with the full amount earning interest from day one. An RD instead spreads deposits across the tenure, so the effective average balance earning interest is much lower than the final total invested — which is why an RD's interest, as a share of total deposited, looks smaller than an FD's interest on the same total amount and rate. It's not a worse rate, just a different, gradual deposit pattern.
RD vs. FD vs. SIP
Choose an FD if you already have the full amount now; an RD if you'd rather commit to guaranteed, fixed monthly savings; or a SIP if you want to invest monthly in market-linked instruments instead of a guaranteed bank rate, accepting more risk for potentially higher long-term returns.
Frequently Asked Questions
How is RD maturity value calculated?
This calculator uses the standard RD interest formula, which sums each monthly instalment's interest based on how many months it remained on deposit before maturity — the same method most Indian banks use. The first instalment earns interest for close to the full tenure; the last earns almost none.
Can I withdraw an RD before maturity?
Most banks allow premature withdrawal but apply a penalty (typically a reduced interest rate) — terms vary by bank, and this calculator assumes the deposit runs to full maturity without early withdrawal.
Why does RD interest look smaller than FD interest on the same amount?
An FD has the full amount earning interest from day one. An RD spreads deposits across the whole tenure, so the average balance actually earning interest at any point is much lower than the total eventually deposited — it's not a worse rate, just a gradual deposit pattern instead of a lump sum.
Does the first or last instalment earn more interest?
The first instalment earns the most, since it stays on deposit for nearly the full tenure. Each later instalment has progressively less time to earn interest before maturity, and the final instalment earns almost none.
Is RD interest taxable?
In India, RD interest is added to your taxable income and taxed at your slab rate, and banks deduct TDS if total interest crosses the threshold in a financial year — this calculator shows the pre-tax maturity amount, not the after-tax figure.
This tool provides general estimates for informational purposes only and isn't financial or tax advice. Consult a qualified financial advisor or tax professional before making financial decisions.