RD
RD Calculator
Estimate recurring deposit maturity, total deposits and interest using the quarterly compounding convention common in Indian banks.
How the calculator works
A recurring deposit takes a fixed monthly installment and pays a contracted interest rate. Most Indian banks compound RD interest quarterly. The formula below is the usual closed-form version of that convention.
Recurring deposit formula
M = P × [((1 + i)^n − 1) / (1 − (1 + i)^(−1/3))]
P is the monthly deposit, i is the quarterly rate (annual rate ÷ 400), and n is the number of quarters. This is the compounding convention used by most Indian banks for RDs.
Example
₹5,000 a month for 5 years at 8% has total deposits of ₹3,00,000. The estimated maturity value is higher by the compounded interest on those installments. A 0% rate returns exactly the sum of deposits, which is a useful check.
Important considerations
Post office RDs and some small-finance-bank products may use a different day-count or penalty schedule. Premature closure reduces the effective rate. Treat this as a bank-RD estimate, not a quote.
Frequently asked questions
Why must tenure be a multiple of 3 months?
The standard Indian bank RD formula compounds quarterly. A tenure that is not a whole number of quarters does not fit that identity cleanly.
Is this the same as a monthly SIP?
Both are monthly contributions, but an RD is a bank deposit with a contracted rate and quarterly compounding. A SIP is a market-linked purchase. Use the SIP calculator for mutual funds.
What if I miss an installment?
Banks may charge a penalty or extend tenure. This calculator assumes every monthly deposit is made on time.
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SmartCalculators provides educational calculators and estimates. Results are for informational purposes only and should not be considered financial, tax, investment, legal or professional advice.