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RD Calculator
Maturity value of a Recurring Deposit with monthly instalments.
Invested
₹3,00,000
Interest
₹60,053
Maturity
₹3,60,053
How it works
A Recurring Deposit is like a monthly FD — a fixed amount each month for a fixed tenure. Each instalment compounds quarterly for the remaining term. Great for building an emergency fund with rigid discipline.
The formula
M ≈ P × [((1 + r)^n − 1) / r] × (1 + r), with r = monthly compounded from quarterly- M
- Maturity value
- P
- Monthly deposit
- r
- Effective monthly rate
- n
- Total months
Worked example
₹5,000/month for 5 years at 7% → maturity ~₹3.59 lakh; you deposited ₹3 lakh, earned ~₹59k interest.
Pro tips
- Interest is taxable at slab; TDS applies if RD interest > ₹40,000 (₹50,000 for seniors).
- Missing an instalment costs a small penalty and may reduce interest for that month.
- For goals > 3 years, a debt mutual fund SIP may beat an RD post-tax.
Common mistakes
- Using RDs for long-term wealth building — inflation eats real returns.
- Confusing RD with SIP; RD is guaranteed but linear, SIP is market-linked but compounds harder.
Go deeper
Concepts to explore
Debt mutual fundsLiquid fundsSweep-in FDs
Results are illustrative and do not include taxes, fees, or slippage. This is educational content — not investment, tax, or legal advice.