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How to calculate recurring deposit maturity

Updated 2026-11-13

Quick answer

A recurring deposit adds a fixed amount each month and earns interest compounded quarterly. ₹5,000 a month for 60 months at 7% matures at ₹3,59,664: you deposit ₹3,00,000 and earn ₹59,664.

Steps

  1. Note the monthly deposit, the yearly rate and the tenure in months. Here: ₹5,000, 7% and 60.
  2. Work out the quarterly rate, i = 7 ÷ 400 = 0.0175, and the number of quarters, q = 60 ÷ 3 = 20.
  3. Apply the formula: maturity = R × ((1 + i)^q − 1) ÷ (1 − (1 + i)^(−1/3)).
  4. Read the maturity value, ₹3,59,664, or enter the numbers in the RD calculator.
  5. Subtract the total deposited, ₹3,00,000, to see the interest.

Tenure changes the interest a lot

With ₹5,000 a month at 7%, a 12-month RD matures at ₹62,311 on ₹60,000 deposited, so the interest is only ₹2,311. A 60-month RD earns ₹59,664 on ₹3,00,000.

Early deposits stay in longer and earn more, so the interest grows faster than the tenure. Raise the deposit to ₹10,000 for 36 months and the RD matures at ₹4,01,373 on ₹3,60,000 deposited, an interest of ₹41,373.

RD or SIP

An RD gives a known return, which suits money you cannot risk, such as a fund for a fixed goal. A SIP into a market investment may earn more, but it can also lose value. Use the SIP calculator to see what a higher assumed return would give, and remember that it is not guaranteed.

Practical points

Miss a monthly deposit and many banks charge a small penalty or reduce the interest. Interest on an RD is taxable, and the calculator shows the gross figure. Banks may round the deposit dates and the quarters differently, so the maturity in your receipt can differ by a few rupees.

Try it yourself

Common questions

How is RD interest compounded?

Most banks compound it quarterly. The calculator uses the quarterly rate, which is the yearly rate divided by 400.

What happens if I miss a deposit?

Banks usually charge a penalty or reduce the interest. The rules differ between banks.

Is RD interest taxable?

Yes. The calculator shows interest before tax.

How is an RD different from an FD?

An FD takes one lump sum at the start. An RD takes a fixed amount every month.

Also read: How to calculate fixed deposit maturity amount, How to calculate SIP returns, with a worked example