Recurring Deposit (RD) Calculator
Calculate RD maturity amount with monthly investments
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Need to calculate RD maturity amount with monthly investments? Recurring Deposit (RD) Calculator answers in seconds. Fill in Monthly Deposit (₹), Interest Rate (%) and Tenure (years) on Recurring Deposit (RD) and read your answer immediately. In Recurring Deposit (RD) the working sits beside the answer. Recurring Deposit (RD) suits budgeting and planning checks. Recurring Deposit (RD) is privacy-first: Regional inputs stay offline. Recurring Deposit (RD) handles monthly savings india the same way as free online recurring deposit (rd) calculator — one of the Regional tools on CalcProMaster. The labels in Recurring Deposit (RD) match the terms in its result. Recurring Deposit (RD) is free, instant and local.
What the defaults mature to
₹5,000 a month for 60 months at 6.5% matures at about ₹3,53,369.84.
You deposit ₹3,00,000 in total, so the interest is roughly ₹53,370. Each instalment compounds for a different length of time, which is why the return is not simply 6.5% of the deposits.
How a recurring deposit compounds
Each monthly instalment is treated as a separate deposit that earns quarterly compounding until maturity. The first instalment earns for the full 60 months, the last for one month.
Banks apply the formula M = Σ P × (1 + r/400)... per instalment, with r the annual rate and quarterly compounding. The page applies that to all 60 deposits and sums them.
Worked example
Monthly deposit ₹5,000
Tenure 5 years = 60 instalments
Rate 6.5% compounded quarterly
Total deposited: ₹5,000 × 60 = ₹3,00,000
Maturity: ≈ ₹3,53,369.84
Interest earned: ≈ ₹53,370
Why the interest is not 6.5% × 5 years
Six and a half percent a year for five years on ₹3,00,000 would be ₹97,500 — but that assumes the whole amount is invested from day one. Here the average deposit is outstanding for about half the term, so the interest is closer to half that figure. A recurring deposit is not a lump-sum investment.
What changes the maturity
- Tenure. Longer terms compound each instalment more, and the effect is larger than the rate change people usually shop for.
- Rate. A 0.5-point difference on this deposit is worth roughly ₹4,000 over five years.
- Missed instalments. Most banks charge a penalty and the shortfall never earns interest, so regularity matters more than amount.
- Tax. Interest is taxable as income, and TDS applies above the threshold, reducing the effective return.
RD versus a lump-sum FD
An RD suits monthly savings from a salary; an FD suits money you already have. For the same total amount over the same term, the FD earns more because it compounds from day one — the RD compensates by matching your cash flow.
Frequently Asked Questions
Why is the maturity ₹3.53 lakh when I deposit ₹3 lakh?
Because each instalment earns interest from the month it is deposited. The total interest of about ₹53,370 comes from 60 deposits compounding for between one and 60 months.
Why is the interest less than 6.5% of the deposits?
Because the average instalment is invested for about half the term. A 6.5% annual return on ₹3,00,000 from day one would need a lump-sum deposit, not a monthly one.
How often does an RD compound?
Quarterly at most banks, which is why the rate is divided by 400 rather than 1200 in the monthly arithmetic. Compounding frequency is set by the bank’s terms.
What happens if I miss an instalment?
Most banks charge a small penalty and the missed amount simply never earns interest. Persistent defaults can close the account, so set up a standing instruction.
Is the interest taxable?
Yes, as income from other sources, and TDS applies once interest crosses the threshold in a financial year. The post-tax return is therefore below the headline rate.
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