How is recurring deposit maturity calculated?

Each monthly installment earns compound interest for the remaining tenure, so earlier deposits earn more than later ones. Banks typically compound RDs quarterly. The calculator sums the compounded value of every installment to give the maturity amount, then splits it into how much you deposited versus how much is interest.

What is the difference between an RD and an FD?

A fixed deposit invests one lump sum upfront, while a recurring deposit invests a fixed amount every month. An FD earns more in total because all the money compounds from day one, but an RD suits people saving from monthly income who don't have a lump sum. Both usually offer the same headline interest rate at a given bank.

Is RD interest taxable?

Yes. In India, RD interest is fully taxable at your income slab and subject to TDS rules like an FD. The maturity value shown is pre-tax, so your net return will be lower — and after tax and inflation, an RD often only just preserves purchasing power, which is why longer goals are usually better served by market-linked SIPs.

Investing

Recurring Deposit (RD) Calculator

Calculate the maturity value of a recurring deposit from a fixed monthly saving, with quarterly compounding — and see what the corpus is really worth after inflation.

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Methodology: Mathematical FormulasData Sources: Inflation & Tax CitationsDisclaimer: Legal Disclosures

Calculation Methodology & Formulas

A recurring deposit is the sum of each monthly installment compounded (quarterly) for its remaining time:

Maturity = ∑ Installment × (1 + r/4)^{(4 × months remaining / 12)}

Real Value = Maturity / (1 + inflation)^t

Earlier installments compound longer, so they contribute more to the final maturity value than later ones.

Real-World Compounding Projections

Saving ₹5,000/month for 5 years at 7%

Depositing ₹5,000 every month for 5 years at 7% (compounded quarterly) matures to about ₹3,58,000 — ₹3,00,000 deposited plus roughly ₹58,000 of interest. After 6% inflation, the corpus is worth about ₹2,67,000 in today's money.

Frequently Asked Questions (FAQ)

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