How this RD calculator works
A recurring deposit lets you put aside a fixed amount every month for a set period and earn a fixed interest rate on it. Each monthly deposit earns interest only for the time it stays in the account, so the first deposit earns the most and the last earns the least. Banks in India compound RD interest quarterly.
Maturity = Σ D × (1 + r ÷ 4)(months remaining ÷ 3)D is the monthly deposit and r is the yearly rate as a decimal. The calculator adds up the growth of every deposit from the month it is made until maturity, with interest compounding quarterly. Your bank's figure may differ by a few rupees because of rounding and exact deposit dates.
RD or SIP?
An RD gives a known, fixed return, which suits short-term goals where you cannot risk losing money. A SIP in a market-linked fund can earn more over long periods but offers no guarantee. Use this calculator with the SIP calculator to compare the two for the same monthly amount.
Like FDs, RD interest is taxable at your slab rate, and missing monthly deposits can attract a small penalty at most banks.
Frequently asked questions
How is RD maturity calculated?
Each monthly deposit is compounded quarterly from the month it is made until maturity, and the results are added together. The calculator does this for every deposit.
Is the RD interest rate fixed?
Yes. The rate is fixed when you open the account and does not change during the tenure.
What happens if I miss an RD instalment?
Most banks charge a small penalty for each late deposit. Missing several can lead to the account being closed, so check your bank's rules.
Is RD interest taxable?
Yes. It is added to your income and taxed at your slab rate, and TDS may apply above a yearly limit.
Last reviewed October 15, 2026. Results are estimates.