Recurring Deposit Calculator
Calculate the maturity amount and interest earned on a recurring deposit (RD). A recurring deposit lets you invest a fixed amount every month and earn compound interest. Compare with a fixed deposit calculator for lump-sum investments or our SIP calculator for market-linked returns.
How to Calculate Recurring Deposit Maturity
- Determine your monthly deposit amount and the interest rate offered by the bank.
- Choose the tenure (duration) of the recurring deposit in months.
- Each monthly installment earns interest for its remaining tenure.
- Interest is typically compounded quarterly in most banks.
- Sum up the matured value of each installment to get the total maturity amount.
Formula
Maturity Amount = P x [(1 + r/n)^(nt) - 1] / (r/n)
Simplified (quarterly compounding):
M = Sum of P x (1 + R/4)^(remaining_quarters) for each installment
Where:
P = Monthly deposit amount
R = Annual interest rate / 100
n = Compounding frequency (4 for quarterly)
t = Tenure in years
Interest Earned = Maturity Amount - (P x number of months)Example
You deposit 5,000 per month for 3 years (36 months) at 7.5% annual interest compounded quarterly:
Monthly Deposit = 5,000
Rate = 7.5% per annum
Tenure = 36 months
Quarterly Rate = 7.5% / 4 = 1.875%
Total Deposits = 5,000 x 36 = 1,80,000
Maturity Amount ≈ 2,02,631
Interest Earned ≈ 22,631
Each installment compounds for its remaining period:
- 1st month deposit compounds for 36/3 = 12 quarters
- 2nd month deposit compounds for 35/3 ≈ 11.67 quarters
- Last month deposit compounds for 1/3 quarterRD Maturity Reference Table
| Monthly Deposit | 1 Year @ 7% | 2 Years @ 7% | 3 Years @ 7% | 5 Years @ 7% |
|---|---|---|---|---|
| 1,000 | 12,462 | 25,820 | 40,137 | 71,933 |
| 2,000 | 24,924 | 51,640 | 80,275 | 143,866 |
| 3,000 | 37,386 | 77,459 | 120,412 | 215,798 |
| 5,000 | 62,311 | 129,099 | 200,686 | 359,664 |
| 10,000 | 124,621 | 258,198 | 401,373 | 719,328 |
| 15,000 | 186,932 | 387,297 | 602,059 | 1,078,992 |
| 20,000 | 249,243 | 516,396 | 802,746 | 1,438,656 |
| 25,000 | 311,553 | 645,495 | 1,003,432 | 1,798,320 |
Frequently Asked Questions
What is a recurring deposit?
A recurring deposit (RD) is a savings scheme where you deposit a fixed amount every month for a predetermined period. At maturity, you receive your total deposits plus compound interest. It is ideal for building savings with regular small investments.
How is RD interest calculated?
RD interest is typically compounded quarterly. Each monthly installment earns interest from its deposit date until maturity. Earlier deposits earn more interest since they remain invested longer.
Is RD better than FD?
RD is better for those who cannot invest a lump sum but can save monthly. FD typically offers slightly higher rates and earns more interest on the full amount from day one. Choose based on your cash flow situation.
Can I withdraw RD before maturity?
Premature withdrawal is usually allowed but attracts a penalty (typically 1% reduction in interest rate). Some banks may not allow partial withdrawal. Check your bank's specific terms before opening an RD.
Is RD interest taxable?
Yes, interest earned on recurring deposits is taxable as per your income tax slab. TDS is deducted if total interest from all deposits exceeds the threshold (currently 40,000 per year for regular citizens).