RD Calculator: Recurring Deposit Maturity Amount

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Quick answer

Enter your monthly deposit, the interest rate and the term in years, and the tool estimates the maturity amount of a recurring deposit next to the total you'll have deposited. It uses a simple-interest approximation in which each deposit earns interest for its remaining months. Banks usually compound RDs quarterly, so the actual maturity is a little different. Your figures stay in your browser.

What the RD Calculator does

The tool estimates what a recurring deposit will be worth at maturity. You pay in the same amount every month, each instalment earns interest for as long as it sits in the account, and the tool adds it all up into a maturity figure shown beside the total you deposit.

Use it to see roughly what an RD will return, to compare monthly amounts or terms, and to see how much of the maturity is interest and how much is your own money.

How it works

In a recurring deposit the first instalment earns interest for the full term and the last for just one month. The tool approximates this with simple interest, working out what each deposit earns over its remaining months and adding that to the deposits.

The maturity value is the total deposited plus that accumulated interest. The total invested is the monthly amount times the number of months, so the gap between the two figures is the interest the RD earns.

Methodology

Read the inputs. Take the monthly deposit, the interest rate and the term in years.
Count the months. Multiply the years by twelve for the number of instalments.
Add the interest. Apply simple interest to each deposit for its remaining months and sum it.
Show maturity and invested. Display the approximate maturity and the total amount deposited.

RD maturity (simple-interest approximation)

n = years × 12 (months, which is the number of instalments)
maturity ≈ M × n × (1 + (r ÷ 100) × (n + 1) ÷ 24)
total invested = M × n (M = monthly deposit, r = annual rate %)

Worked example
₹5,000/month at 7% for 5 years → maturity ≈ ₹3,53,375 · invested ₹3,00,000

This is a simple-interest approximation. Banks generally compound recurring deposits quarterly, so the actual maturity is usually a little higher than this estimate.

Assumptions

Interest uses a simple-interest approximation. Real banks compound recurring deposits quarterly, so the actual maturity differs slightly.
The interest rate stays fixed for the whole term, and a deposit goes in every month without a miss.
The maturity is gross, before any tax such as TDS that a bank may deduct from the interest.

Standards and references

Recurring deposit: A savings product in which you deposit a fixed amount every month for a set term and get the principal plus interest at maturity. The rate is usually fixed when you open the RD.
Simple-interest approximation: Each instalment is credited interest for the months it stays in the account. Adding those up gives a close estimate, though banks calculate it differently.
Banks compound quarterly: Most banks work out RD interest with quarterly compounding, as they do for a fixed deposit, which makes the real maturity a little higher than a simple-interest estimate.

Accuracy and limits

The estimate is close enough for planning. It reflects how each monthly deposit earns interest for fewer and fewer months and adds up to a realistic maturity.

It's a simple-interest approximation, not the bank's exact method. Banks usually compound quarterly, so the actual maturity is typically a little higher. Use this as a guide and get the exact figure from your bank.

It assumes a fixed rate and a deposit every single month. A missed deposit, a penalty or a rate change would alter the real maturity, and the estimate models none of them.

The maturity is before tax. RD interest is taxable and banks may deduct TDS, so what you take home can be lower than the gross figure shown.

Real-world uses

Estimating an RD return

See roughly what a recurring deposit will mature to.

Comparing amounts or terms

Try different monthly deposits and durations.

Planning savings

Work out a monthly amount to reach a goal.

Seeing the interest earned

Compare maturity against the total deposited.

When it fits, and when it doesn't

Good for

Estimating a recurring deposit's maturity
Comparing monthly amounts and terms
A quick savings projection
Seeing interest versus deposits

Not the best choice for

The exact bank figure (they compound quarterly)
After-tax (post-TDS) maturity
RDs with missed deposits or penalties
Variable or changing interest rates

Your bank's own RD calculator gives the exact maturity because it applies the bank's quarterly compounding. For the after-tax amount, subtract the tax due on the interest. This tool gives a close gross estimate.

Frequently asked questions

How accurate is the maturity figure?

It is a close estimate using simple interest. Banks usually compound recurring deposits quarterly, so the real maturity is typically a little higher. Use this as a guide and confirm with your bank for the exact amount.

Why do banks get a slightly different number?

Because most banks compound RD interest quarterly, like a fixed deposit, while this tool uses a simpler interest calculation. Quarterly compounding adds a little more, so the bank's figure is usually marginally higher.

What is the total invested?

Your monthly deposit times the number of months. For ₹5,000 a month over five years that is sixty deposits, or ₹3,00,000, and the maturity above that is the interest earned.

Is the maturity before or after tax?

Before tax. Interest on a recurring deposit is taxable and the bank may deduct TDS, so your actual take-home maturity can be lower than the gross figure shown.

Does it assume I never miss a deposit?

Yes. It assumes a deposit every month at a fixed rate. A missed instalment or a penalty would change the real maturity, which the estimate does not account for.

How is an RD different from a fixed deposit?

A fixed deposit is a single lump sum left for a term; a recurring deposit is a fixed amount paid in every month. The RD suits regular saving, while the FD suits a one-time amount.

Can the interest rate change during the term?

The rate is usually locked when you open the RD and stays fixed for the term. This tool assumes a fixed rate, so a product with a variable rate would mature to a different amount.

How do I reach a target maturity?

Adjust the monthly deposit, rate or term until the estimated maturity meets your goal. Remember the figure is gross, so aim a little higher to allow for tax on the interest.

Does a higher rate or longer term help more?

Both raise the maturity, but a longer term has the bigger effect because early deposits earn interest for many more months. Try a few combinations to see which suits your goal.

What currency does it use?

The example uses rupees, but the calculation works on plain numbers, so any currency will do.

Is my data uploaded?

No. The deposit, rate and term you enter are calculated in your browser and never sent to a server.

Why is it called an approximation?

It uses a simple-interest method instead of the bank's exact quarterly compounding. That's close enough for planning, and the label reminds you the bank's figure will differ slightly.

References

Maturity is estimated with a simple-interest approximation. Banks compound RDs quarterly, so the bank's figure will come out slightly different from this one.

FD Calculator

Estimate a fixed-deposit maturity with quarterly compounding, the convention most Indian banks use. Works in rupees and updates as you type.