RD Calculator

A Recurring Deposit lets you build savings with a fixed amount deposited every month, earning compound interest. Banks typically compound RD interest quarterly even though deposits are monthly — this calculator uses that same standard formula.

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Total deposited
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Interest earned
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Maturity value

How to Use This Tool

  1. Enter the amount you'll deposit every month.
  2. Enter the interest rate offered by the bank.
  3. Enter the tenure in months.
  4. The total deposited, interest earned and maturity value update automatically.

Formula

M = R × [(1 + i)^q − 1] / (1 − (1 + i)^(−1/3)) Where M is the maturity value, R is the monthly deposit, i is the quarterly interest rate (annual rate ÷ 4 ÷ 100), and q is the number of quarters in the tenure.

Example: depositing 5,000 per month for 24 months at 6.5% annual interest gives a total deposit of 120,000 and an estimated maturity value of roughly 128,250.

Why Use ToolVigo's RD Calculator

  • Uses the standard quarterly-compounding formula banks use for recurring deposits, not a simplified approximation.
  • Shows interest earned separately from your own deposits.
  • Works for any tenure from a few months up to 10 years.

Limitations

Uses the standard bank RD formula with quarterly compounding; a small number of banks use slightly different conventions, so treat this as a close estimate rather than an exact figure for every bank.

Privacy & Security

This tool runs entirely in your browser. Nothing you enter is uploaded to ToolVigo's servers or stored anywhere.

This calculator provides an estimate for informational purposes only and is not financial advice. Actual returns, interest rates and scheme rules can change and may differ from this estimate. Confirm current rates and rules with the official scheme provider or a licensed financial advisor before making decisions.

Frequently Asked Questions

Why is RD interest compounded quarterly if I deposit monthly?

This is the standard convention most banks use for recurring deposits — each monthly installment effectively earns interest compounded on a quarterly basis until maturity, which is why the formula is more involved than a simple monthly compounding calculation.

Is RD interest taxable?

In many jurisdictions, RD interest is taxable as income, similar to fixed deposit interest — confirm current rules with a tax advisor.

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