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 to calculate estimated maturity value
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
RD Calculator 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.