RD Calculator — Recurring Deposit Maturity & Interest
A Recurring Deposit (RD) lets you save a fixed amount every month and earn interest on the growing balance. Enter your monthly installment, the annual rate and the term to see exactly how much you will receive at maturity — and watch the balance grow month by month.
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Total balance at the end of the RD term
- 1
Monthly interest rate
6.5% ÷ 1200 = 0.00541667Annual rate converted to a monthly decimal rate. - 2
Growth factor
(1 + 0.00541667)^24 = 1.138429 - 3
Maturity amount
5,000 × (1.138429 − 1) ÷ 0.00541667 = 127,780.55
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Recurring Deposit maturity = P × [(1 + i)ⁿ − 1] / i, where P is the monthly installment, i = annual rate / 1200, and n is the term in months. Each deposit compounds monthly until maturity; total interest = maturity − (P × n).
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How this is calculated
With a Recurring Deposit you commit to depositing a fixed amount P each month for n months. Each installment is placed in the account at the end of the month and earns compound interest at the monthly rate i = r / 1200 (where r is the annual rate in percent) until maturity. The maturity value is the future value of an ordinary annuity: M = P × [(1 + i)ⁿ − 1] / i. This sums the compounded value of every installment — the first deposit earns interest for n − 1 months, the second for n − 2 months, and so on, with the final installment earning interest for just one month.
The total deposited is simply P × n; anything above that is interest. Because each later installment has less time to compound, the interest portion grows modestly compared to a lump-sum deposit of the same total amount at the same rate. However, RDs require only small monthly amounts, making them accessible for regular savers.
The effective annual return shown here is a rough annualised figure derived from the total interest earned over the full term, adjusted for the term length. It should be used only for quick comparison between RD offers — actual bank terms may include premature withdrawal penalties and quarterly compounding variations that this calculator does not model.
Ceisteanna coitianta
Each monthly installment earns compound interest from the date it is deposited until maturity. The standard formula treats this as an ordinary annuity: M = P × [(1 + i)ⁿ − 1] / i, where i is the monthly interest rate (annual rate ÷ 1200) and n is the number of months.
Most banks allow premature RD closure but apply a penalty — typically a reduction of 1–2% below the contracted rate, or forfeiture of interest for a portion of the term. This calculator assumes the account is held to full maturity. Check your bank's specific terms for early-withdrawal conditions.
A Fixed Deposit (FD) is a single lump-sum investment; an RD involves fixed monthly contributions. FDs are better if you have a large sum now; RDs suit regular savers who want to build a corpus incrementally. For the same total invested amount, an FD will earn more interest because the full principal compounds from day one.
Ar a dtugtar freisin
TG we-Calculate Editorial Team. (2026). RD Calculator — Recurring Deposit Maturity & Interest [Online calculator]. TG we-Calculate. https://we-calculate.com/ga/calculator/rd-calculator
TG we-Calculate Editorial Team. "RD Calculator — Recurring Deposit Maturity & Interest." TG we-Calculate. 2026. https://we-calculate.com/ga/calculator/rd-calculator.
TG we-Calculate Editorial Team, "RD Calculator — Recurring Deposit Maturity & Interest," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/ga/calculator/rd-calculator
@misc{wecalculate_rd_calculator, title = {RD Calculator — Recurring Deposit Maturity & Interest}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/ga/calculator/rd-calculator}}, year = {2026}, note = {TG we-Calculate} }
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