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RD calculator
Maturity value of a recurring deposit with monthly instalments.
Quick answer
Enter the monthly deposit, the rate and the months. โน5,000 a month for 60 months at 7% matures at about โน3,59,664.
Maturity value
โน3,59,664
- Amount invested
- โน3,00,000
- Gain
- โน59,664
Interest on an RD is taxable.
How it works
A recurring deposit lets you save a fixed amount every month at a fixed rate. Banks compound the interest quarterly.
Each deposit earns interest only from the day it goes in, so the early deposits earn the most.
Missing an instalment usually brings a small penalty; the calculator assumes you pay every month.
The formula
- Maturity = R ร ((1 + i)^q โ 1) รท (1 โ (1 + i)^(โ1/3))
- R = monthly deposit, i = yearly rate รท 400, q = months รท 3 (quarters)
A worked example
โน5,000 a month for 60 months at 7%: i = 0.0175 and q = 20, so maturity = โน3,59,664. You deposit โน3,00,000, so the interest is โน59,664.
Common questions
How is an RD different from an FD?
An FD is one deposit at the start. An RD is a small deposit every month, which suits regular savers.
Which compounding does the RD calculator use?
Quarterly, which is how most Indian banks and the post office quote RD interest.
Is RD interest taxable?
Yes, as income. TDS may apply above the bankโs yearly interest limit.
Can I close an RD early?
Usually yes, but at a lower rate. Check your bankโs terms.