A Recurring Deposit lets you build savings through fixed monthly instalments while earning FD-like interest, usually compounded quarterly. This calculator projects your maturity value.
How to Use This Calculator
- Enter your monthly RD instalment amount.
- Enter the annual interest rate.
- Enter the tenure in months.
- View the maturity value and total interest earned.
How the Calculation Works
Each monthly instalment is compounded for its own remaining tenure using the bank's compounding convention (commonly quarterly): Maturity ≈ Σ [Instalment × (1 + r/n)^(n × remaining time for that instalment)], summed across all instalments.
Worked Example
A monthly RD of ₹5,000 at 7% annual interest for 3 years (36 months) yields an estimated maturity value in the range of ₹1.98–2.00 lakh, of which ₹1.80 lakh is your own deposits — see the calculator above for the precise figure using your bank's compounding method.
Who Should Use This
Savers who prefer disciplined monthly saving with a guaranteed rate, rather than a one-time lumpsum FD.
Important Considerations
The exact maturity value can vary slightly between banks depending on their specific RD compounding formula. Interest earned is taxable, and premature withdrawal may attract a penalty rate.
Common Mistakes
Comparing RD returns directly with SIP returns without adjusting for the fact that RD offers a guaranteed rate while SIP returns are market-linked and variable can lead to an unfair comparison.
References
Compare with the Fixed Deposit Calculator for a one-time deposit alternative.