Recurring Deposit Calculator
Calculate the maturity amount and interest earned on your recurring deposit investments.
Adjust Parameters
₹500₹1,00,000
1%15%
0.5 years10 years
Shows inflation-adjusted returns
Recurring Deposit Details
How to Calculate Recurring Deposit Returns
The maturity amount for a Recurring Deposit is calculated using the following formula:
M = P × n + P × (n × (n+1) / 2) × (r/100) × (1/12)
Where:
- M = Maturity amount
- P = Monthly installment
- n = Number of quarters
- r = Annual interest rate
Example Calculation
For a monthly RD of ₹5,000 at 7% interest for 3 years with quarterly compounding:
- P = 5,000
- n = 36 months
- r = 7%
- Total investment = ₹1,80,000
- Interest earned = ₹19,897
- Maturity amount = ₹1,99,897
Compounding Frequency Impact
Different compounding frequencies affect your returns:
- Quarterly: Interest calculated four times per year
- Monthly: Interest calculated twelve times per year
- Higher compounding frequency = higher returns
About Recurring Deposits
A Recurring Deposit (RD) is a financial instrument offered by banks that allows you to save a fixed amount every month for a predetermined period. It combines the features of a savings account and a fixed deposit, offering higher interest rates than savings accounts while allowing regular monthly investments.
Benefits of Recurring Deposits
- Disciplined savings habit
- Higher interest rates than savings accounts
- Flexible tenure options (typically 6 months to 10 years)
- Low minimum deposit requirement
- Loan facility against RD
- Premature withdrawal option with penalty
How to Use This Calculator
- Enter your monthly investment amount
- Set the interest rate offered by your bank
- Choose your investment time period
- Select the compounding frequency
- View the projected maturity amount and interest earned