The concept
What a recurring deposit is
A recurring deposit is a level monthly deposit held with a bank for a fixed term at a fixed, pre-agreed interest rate.
This calculator uses a simplified monthly-compounding model. Many banks compound RD interest quarterly, which can produce a slightly different maturity value for the same nominal rate.
The method
How the calculation works
The annual rate is converted to a monthly rate and applied to each deposit using an annuity-due model, assuming a deposit is made at the start of each month before interest is credited. Actual bank RD schedules, compounding conventions and TDS rules vary by institution.
D is the monthly deposit, i is the monthly rate, and n is the number of months, compounded as an annuity due.
Worked example
A neutral example
Depositing ₹5,000 each month at an assumed 6.5% annual rate over 24 months produces an illustrative maturity value before tax.
This example explains the method. It does not recommend a financial action or predict an outcome.
Frequently asked
RD Calculator questions
Does this match my bank's exact RD calculator?+
Not necessarily. Banks often compound RD interest quarterly rather than monthly, which changes the result slightly.
Does this include tax deducted at source (TDS)?+
No. RD interest is generally taxable and this estimate is before any tax.
What happens if a deposit is missed?+
This calculator assumes every monthly deposit is made on schedule; missed deposits typically reduce the maturity value and may incur a penalty.