Recurring Deposit (RD) Calculator
Calculate RD maturity value from monthly deposits with quarterly compounding.
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๐ Explore related calculators
Compound Interest Calculator
Example 1 โ Lump sum, no contributions
A = 1,00,000 ร (1.10)^10 โ โน2,59,374 โ more than 2.5ร growth
๐ What is the Recurring Deposit (RD) Calculator?
A Recurring Deposit lets you build a fixed-return corpus through disciplined monthly deposits rather than a single lump sum, with quarterly compounding that produces a guaranteed maturity value known in advance โ useful for short, defined savings goals where market volatility is not acceptable.
โ๏ธ How RD Calculator is calculated
Quarterly compounding on monthly deposits
Unlike a SIP where each contribution is invested in the market, an RD applies a fixed interest rate compounded quarterly. Since deposits arrive monthly but compounding happens quarterly, each instalment effectively compounds for a slightly different duration depending on when in the quarter it was deposited.
Why RD returns are fixed and known in advance
Unlike equity SIPs, an RD's maturity value is calculable in advance the moment you start, since the interest rate is locked for the full tenure โ useful when you specifically need certainty about the final amount rather than the potential for higher but variable returns.
Penalty for missed instalments
Most banks charge a modest penalty per missed monthly instalment, and may close the RD account entirely if multiple instalments are missed in a row โ RDs work best when you are confident you can sustain the monthly commitment for the full tenure.
RD maturity (quarterly compounding)
Maturity = sum of all instalments, each compounded quarterly for its remaining tenure
๐งฎ Worked examples
Example โ 2-year RD
โน5,000/month for 24 months at 7% interest.
โ Maturity โโน1,29,099 (invested โน1,20,000, interest earned โโน9,099)
Comparing RD to a simple lump-sum FD
Same total amount (โน1,20,000) deposited as a lump sum FD instead, at the same 7% rate, for 2 years.
โ A lump-sum FD typically yields more interest than an RD of the same total, since the full amount compounds from day one rather than arriving gradually over the tenure
๐ก Original insights & how to use this calculator
Saving toward a known, near-term goal
RDs work well for goals with a fixed amount and fixed date 1โ3 years out, like a planned purchase or a deposit for a larger commitment, where the guaranteed, predictable maturity value matters more than maximising returns.
Building a savings discipline before moving to market-linked instruments
For someone new to structured saving, an RD's fixed monthly commitment and guaranteed outcome can be a useful stepping stone before committing to the variability of an equity SIP.
Comparing RD against a SIP for the same monthly amount
An equity SIP at a higher expected return will likely outperform an RD over the same period, but with real volatility โ RDs remain the more appropriate choice specifically when capital certainty matters more than expected return.
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๐ก Expert tips
RDs are useful for disciplined saving toward a known short-term goal, since missing a deposit usually triggers a small penalty.
Unlike a SIP, RD returns are fixed and guaranteed โ useful when you can't tolerate market volatility.
โ Common questions
What happens if I miss an RD instalment?
Most banks charge a small penalty per missed instalment, and may close the RD if multiple instalments are missed.
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