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Work out what a recurring deposit matures to, priced instalment by instalment the way banks actually do it rather than through the approximate formulas in circulation. Includes senior-citizen rates, TDS and the post-tax value.
Step 1
Enter your monthly instalment
The same amount is debited on the same date every month for the full term. Missing one usually attracts a small penalty.
Step 2
Add the rate and the term
RD rates are usually a touch below the equivalent FD rate for the same tenure.
Step 3
Set your tax slab
RD interest is taxed exactly like FD interest — at your slab rate, with no concession.
Maturity value
₹7,19,328
What the deposit is worth after 5 yrs.
Interest earned
₹1,19,328
Tax on interest
₹35,798
Interest is added to your income and taxed at 30%.
An RD is not one compounding calculation but many. Each instalment is a separate deposit that compounds only for the months it stays invested, so the first instalment earns for the full term and the last earns for a single month.
M = Σ P × (1 + r ÷ n) ^ (n × mₖ ÷ 12)Maturity value
The sum of every instalment grown to the maturity date.
Monthly instalment
The fixed amount deposited each month.
Annual interest rate
As a decimal, so 7% is 0.07.
Compounding periods a year
Four for quarterly, which is the banking convention.
Months invested
For instalment k in a tenure of N months, this is N − k + 1. The first instalment gets N months, the last gets one.
Summing instalments individually is what makes this agree with a bank's own figure. The single-expression RD formulas widely quoted online are approximations that drift on longer tenures.
Unlike a market SIP, the rate is part of the deposit product. Premature closure and bank-specific rounding can still differ from this sketch.
Answers about the rd calculator.
Continue exploring adjacent tools in this topic.
Guides that explain the ideas behind these numbers.
These figures are estimates based on the values and assumptions you enter. Market returns are not guaranteed. Tax, brokerage and other rules can change. Finaura is an educational tool, not personalised financial, tax, investment or legal advice. Confirm important decisions with the relevant institution or a qualified professional.