Find the maturity value of a recurring deposit from your monthly instalment, rate and tenure.
RD maturity formula
Each monthly instalment earns interest for the months left until maturity, compounded quarterly:
M = Σ R × (1 + i ÷ 4)^(4 × months left ÷ 12)Example
₹3,000 a month for 3 years at 7%: deposited ₹1,08,000, maturity about ₹1,20,360.
Good to know
- Bank RDs run from 6 months to 10 years; the rate is fixed for the full term.
- Missing instalments attracts a small penalty; many banks allow a one-time top-up.
- TDS applies on RD interest just like FDs.
Compare with the post office RD (6.7%) and a SIP.
How to use the RD calculator
- Enter the amount you will deposit every month (banks accept as little as ₹100).
- Type the interest rate your bank offers — RD rates usually match the FD rate for the same tenure (6–7.5% in 2026; senior citizens get about 0.5% more).
- Set the tenure in years (6 months to 10 years) and read the maturity value, total deposit and interest earned.
- Try a higher monthly amount or a longer tenure and watch how the interest line changes.
Step-by-step: ₹2,000 a month for 2 years at 6.5%
Banks compound RD interest every quarter, and each instalment earns interest only for the months it stays in the account. Doing it by hand:
- The first instalment stays for 24 months: 2,000 × (1 + 0.065 ÷ 4)8 = ₹2,275.
- The twelfth instalment stays for 13 months: 2,000 × (1.01625)4.33 = ₹2,145.
- The last instalment stays for 1 month and earns about ₹11.
- Add all 24 amounts: maturity ≈ ₹51,370 on a deposit of ₹48,000 — interest of about ₹3,370.
The calculator does these 24 additions for you, so you can compare banks in seconds.
Worked examples
| Situation | Working | Answer |
|---|
| ₹5,000 a month, 5 years, 7% | 60 instalments compounding quarterly | ₹3,59,664 (deposit ₹3,00,000) |
| ₹10,000 a month, 1 year, 6.75% | 12 instalments | ₹1,24,454 (deposit ₹1,20,000) |
| ₹1,000 a month, 5 years, post office 6.7% | see the Post Office RD Calculator | ₹71,366 (deposit ₹60,000) |
Tips and common mistakes
- TDS of 10% is deducted when total interest from a bank crosses ₹50,000 in a year (₹1 lakh for senior citizens); submit Form 15G/15H if your income is below the taxable limit.
- An RD is ideal for a goal 1–3 years away — school fees, a bike, a trip. For longer goals compare a SIP.
- Paying an instalment late costs a small penalty (₹1–2 per ₹100 per month in most banks); set an auto-debit on salary day.
- Breaking an RD early usually means the rate for the period actually completed, minus 0.5–1%.
Frequently asked questions
How much will I get for ₹5,000 RD for 5 years?
At 7% with quarterly compounding, about ₹3,59,700 on ₹3,00,000 deposited.
Is RD interest compounded monthly?
Banks and the post office compound RD interest quarterly, which this calculator uses.
RD or SIP — which is better?
RD returns are fixed and safe; SIPs in equity funds can earn more over 5+ years but fluctuate. Use RD for short, fixed goals.