RD Calculator - Recurring Deposit Planner

Calculate maturity values and guaranteed interest earnings for bank recurring deposits.

Reviewed for Budget 2025 • Last updated 21 June 2026 • by Sandesh D.

RD Parameters

Monthly Deposit₹5,000
Amount deposited at the start of each month
₹
Interest Rate (% p.a.)7%
Guaranteed annual rate of return
%
Tenure (Months)12 Months
Duration in number of monthly payments
Months
Equivalent to **1.0** years.

RD Summary

Total Invested (96%)Interest Earned (4%)
Total Principal Invested₹60,000
Estimated Interest₹2,311
Maturity Value₹62,311

Looking for higher returns?

If you have a long-term goal, a mutual fund SIP can yield higher returns than a bank RD.

Try SIP Calculator

Calculation Methodology & Rules

The RD Calculator estimates the maturity value of systematic monthly deposits made into a bank recurring deposit scheme.

Quarterly Compounding RD Formula

RD compounding is calculated by summing the future value of each monthly installment. For a series of n monthly installments of amount P at annual rate R:

Maturity Value = Σk=1n P × (1 + R / 4)(n - k + 1) / 3

Where:

  • P: Monthly installment deposit (₹)
  • R: Annual interest rate as a decimal (annual percentage / 100)
  • n: Total number of months (tenure)
  • k: The installment index (from 1 to n)

Note that interest is compounded quarterly (divided by 4), and the compounding exponent is the remaining quarters `(n - k + 1) / 3` for each respective installment.

For detailed rules, formulas, references, and official guidelines, see the complete Ganakam Calculation Methodology.

Frequently Asked Questions

In India, bank Recurring Deposits compound interest quarterly. The calculator compounds each monthly installment for its remaining tenure individually. For example, your first month's installment earns interest for 12 months, the second month's for 11 months, and so on.

Yes, RD interest is fully taxable. Just like Fixed Deposits, the interest earned on RDs is taxed under 'Income from Other Sources' at your marginal income tax slab. TDS (Tax Deducted at Source) at 10% applies if your total interest exceeds ₹40,000 (₹50,000 for senior citizens).

A Recurring Deposit (RD) is a risk-free savings tool offered by banks that guarantees a fixed interest rate. A Systematic Investment Plan (SIP) is a method of investing in mutual funds where returns are market-linked and not guaranteed, but offer higher long-term growth potential.