Recurring Deposit (RD) Calculator
Estimate the maturity value of monthly recurring deposits using standard quarterly-compounded bank RD rates, with preset scenarios. Free to use.
Recurring Deposit (RD)
A Recurring Deposit calculator computes the maturity value of fixed monthly deposits into a bank RD account, using the standard quarterly-compounding bank RD formula.
Maturity Value = R × [((1 + i)^(n/3) − 1) / (1 − (1 + i)^(−1/3))], where R is the monthly deposit, i is the quarterly interest rate, and n is the number of months.
Input: ₹10,000/month for 3 years at 7% annual interest
Result: Maturity value ≈ ₹4.02 lakh (₹3.6 lakh deposited, ≈₹42,000 in interest)
Why does RD use quarterly compounding specifically?
This mirrors the convention most Indian banks actually use to compute RD maturity, even though deposits are monthly — it's the standard bank RD formula, not a simplification.
Is RD better than a SIP into a mutual fund?
RD offers a fixed, guaranteed rate with no market risk; a SIP into equity has historically higher but uncertain returns. They serve different risk appetites.
RD Calculator: how it works
An RD calculator finds the maturity value of a recurring deposit, where each monthly instalment earns interest for the remaining term.
Formula
Each instalment compounds for its own remaining tenure; the maturity value is the sum of all instalments' compounded values.