— Investment
RD Calculator (Recurring Deposit)
Work out what a recurring deposit grows to — a fixed amount paid in every month, compounded quarterly the way banks do it.
Maturity value
₹359,663.95
- Total deposited
- ₹300,000
- Total interest earned
- ₹59,663.95
- Total return
- 19.89%
- Effective annual yield
- 7.19%
— Year by year
| Period | Deposited | Interest | Balance |
|---|---|---|---|
| Year 1 | ₹60,000 | ₹2,310.66 | ₹62,310.66 |
| Year 2 | ₹120,000 | ₹9,098.9 | ₹129,098.9 |
| Year 3 | ₹180,000 | ₹20,686.49 | ₹200,686.49 |
| Year 4 | ₹240,000 | ₹37,418.28 | ₹277,418.28 |
| Year 5 | ₹300,000 | ₹59,663.95 | ₹359,663.95 |
— Deposited vs interest
Download— How it works
Maturity = Σ each monthly deposit compounded at the quarterly rate for its remaining tenure.
How a recurring deposit grows
A recurring deposit is the disciplined saver’s account: you pay in a fixed amount every month for a fixed tenure, and the bank pays a fixed rate of interest, compounded each quarter. Because the early instalments sit for the whole term and the later ones only briefly, each month’s deposit earns a different amount of interest — the calculator adds them all up to the maturity value, splitting it into what you paid in and the interest the bank added.
The quarterly compounding is what sets an RD apart from a monthly investment plan. Interest is calculated and added to your balance four times a year, so it begins earning interest of its own from the next quarter — the same snowball as any compounding, just on a fixed, guaranteed rate.
Worked example — ₹5,000 a month for 5 years at 7%, compounded quarterly: You deposit 60 × ₹5,000 = ₹3,00,000. It matures at about ₹3,59,600 — roughly ₹59,600 of guaranteed interest.
Why quarterly compounding matters
Most online “SIP” maths compounds monthly; a bank RD compounds quarterly, which gives a slightly lower figure for the same headline rate. The difference is small but real, and using the wrong convention overstates an RD’s maturity. This calculator uses the bank-accurate quarterly method by default, and the effective annual yield it shows — your stated rate turned into its true annual equivalent after compounding — lets you compare an RD fairly against other products.
If you have a non-standard product that compounds monthly, you can switch the frequency under Advanced options.
Tax and inflation
RD interest is fully taxable: it is added to your income and taxed at your slab rate, and banks deduct TDS once the interest crosses the threshold. Enter your rate and the calculator shows the post-tax maturity — the figure you actually keep. Because the return is fixed and modest, tax takes a meaningful bite, which is worth weighing against tax-advantaged alternatives.
Inflation is the other quiet drag. A guaranteed 7% can still lose to rising prices in real terms; switch on an inflation rate to see the maturity in today’s money. RDs are about safety and certainty rather than beating inflation, and the real-value figure makes that trade-off explicit.
— Reader questions
How is RD interest calculated?
Each monthly instalment earns interest, compounded quarterly, for the time it stays in the account — the first instalment for the whole tenure, the last for only a month or so. Summing every instalment’s grown value gives the maturity amount, which is exactly what this calculator does.
Why is an RD’s maturity lower than a SIP calculator shows?
Because banks compound RDs quarterly, while most SIP calculators assume monthly compounding. For the same rate, quarterly compounding credits interest less often, so the maturity is a little lower. This calculator uses the correct quarterly convention by default.
Is RD interest taxable?
Yes. It is added to your income and taxed at your slab rate, and the bank deducts TDS once your interest in a year crosses the threshold. Enter your tax rate under Advanced options to see the post-tax maturity.
What is the effective annual yield?
It is your stated rate expressed as a true annual rate after compounding. A 7% rate compounded quarterly has an effective annual yield of about 7.19%, because each quarter’s interest itself earns interest. It lets you compare an RD against products quoted differently.
Can I choose the tenure in months?
Yes. Set the years and add any extra months in the tenure field. The calculator handles part-year tenures and shows the maturity at the exact term you choose.
Is an RD a good investment?
It is a safe, predictable way to build a habit of saving, with guaranteed returns and no market risk. The trade-off is a modest, taxable return that may only just keep pace with inflation — for long-term growth, market-linked options like an SIP have historically done more, with more risk.