Recurring Deposit Calculator

A Recurring Deposit (RD) is a term-deposit product where you invest a fixed amount every month. This calculator uses the standard RD maturity formula with quarterly compounding.

How Recurring Deposits Work

• Monthly Deposits: You deposit a fixed amount every month
• Fixed Tenure: Choose your tenure in years or months
• Interest Compounding: Interest is applied on a quarterly basis
• Guaranteed Returns: Safe investment with predictable returns

Correct RD Maturity Formula

To match Groww-style RD output, maturity is computed as the sum of each monthly installment's matured value:

Maturity = Sum from j=1 to M of round( P × (1 + i)^{(M - j + 1)/3} )

Where:

• P = monthly investment
• M = total tenure in months
• i = quarterly interest rate (as a decimal) = R / (4 × 100), with R as the annual rate in percent
• j = installment index from 1 to M

Total Invested = P × number of months

Estimated Returns = Maturity − Total Invested

This installment-wise rounding is why result may differ by a few rupees from closed-form approximations.

Worked Example

P = ₹50,000 per month, R = 6.5% p.a., t = 3 years (36 months), i = 6.5 / 400.

Total Invested = 50,000 × 36 = ₹18,00,000

Now apply the formula term-by-term:

Term₁ = round(50,000 × (1 + 0.01625)^36/3) = round(50,000 × (1.01625)¹²)

Term₃₆ = round(50,000 × (1 + 0.01625)^1/3)

Similarly calculate Term₂ to Term₃₅, then add all 36 rounded terms:

Maturity = Term₁ + Term₂ + ... + Term₃₆

Maturity ≈ ₹19,91,214

Estimated Returns ≈ ₹1,91,214

Benefits of Recurring Deposits

• Start with as little as ₹500 per month
• Builds a habit of regular saving
• Guaranteed returns with capital protection
• Loan facility available against RD
• Premature closure option (with penalty)

Key Factors

Monthly Deposit: The fixed amount you deposit every month

Interest Rate: Annual interest rate offered by the bank (typically 6-7%)

Tenure: The duration for which you maintain the RD (this calculator supports up to 9 years)