How the RD Calculator Works
Enter the amount you plan to deposit every month, the annual interest rate your bank offers, and the tenure in months.
Indian banks typically compound RD interest quarterly. This calculator simulates your deposits month by month and applies quarterly compounding to the running balance, the same approach used by most bank RD calculators.
The result shows your total deposited amount, the interest earned on top of it, and the final maturity value you can expect at the end of the tenure.
Formula Used
Each monthly deposit compounds quarterly for the remaining period until maturity. The calculator simulates this as:
Balance(month) = (Balance(month-1) + Deposit) × (1 + r/4) every 3rd month- DepositFixed monthly deposit amount
- rAnnual interest rate (as a decimal)
- r/4Quarterly interest rate applied to the running balance
Example Calculation
Suppose you start a 2-year (24-month) RD.
- Monthly Deposit₹5,000
- Interest Rate7% p.a.
- Tenure24 months
- ResultTotal Deposited ≈ ₹1,20,000, Maturity Amount ≈ ₹1,29,247 (Interest Earned ≈ ₹9,247)
Important Assumptions
- Interest is assumed to compound quarterly on the running balance, matching common Indian bank RD conventions — some banks may use slightly different compounding methods.
- Deposits are assumed to be made on time every month for the full tenure, with no missed installments or penalties.
- This calculator does not account for TDS or income tax on RD interest, which is taxable as per your income slab.
- Premature closure penalties, if applicable, are not factored into this calculation.