How this calculator works
- Step 1Save each month₹5,000.00Repeat for 60 months.
- Step 2Accrue interest monthly0.58%An equivalent monthly rate derived from nominal quarterly compounding.
- Step 3Add all grown instalments₹3,59,663.95Illustrative maturity before tax and penalties.
A recurring deposit, or RD, builds a balance through equal monthly deposits. Each instalment earns interest only for the time it remains in the account. The first deposit grows for longer than the last.
A fixed deposit, by contrast, is funded entirely at the start; the FD calculator handles that case.
This worksheet models a nominal annual rate compounded quarterly. It converts each quarter into three equal compound months. That makes deposit timing explicit and gives a reproducible monthly ledger; it does not claim to reproduce a particular bank’s settlement system.
Worked example: monthly saving over five years
- Equivalent monthly rate
i = (1 + annual percentage / 400)^(1/3) − 1- End-of-month maturity
M = deposit × [(1 + i)^N − 1] / i- Start-of-month maturity
Mstart = M × (1 + i)
- imonthly interest rate 0.58%
- Nnumber of equal deposits 60
- Monthly deposit₹5,000.00
- Nominal annual rate, quarterly compounding7%
- Total deposited₹3,00,000.00
- Interest under the start-of-month model₹59,663.95
- Illustrative maturity₹3,59,663.95
The maturity is the sum of your deposits and the modelled interest. The displayed monthly rate is rounded, but the engine uses its full precision. Substituting the rounded percentage into a spreadsheet can produce a slightly different answer.
Deposit dates change the answer
- Start of each month₹3,59,663.95The first instalment is deposited today; every deposit receives one extra month of accrual.
- End of each month₹3,57,590.06The first instalment arrives after one complete month. The last deposit earns no interest before maturity.
The start convention measures maturity after the final complete month, not immediately after making the last start-of-month instalment. Both choices contain the same number of deposits. Check the actual due dates before comparing this illustration with a bank quote.
Quarterly does not mean divide by twelve
The equivalent monthly rate preserves quarterly compounding; dividing the nominal yearly rate by twelve is a different convention.
The nominal rate is divided by four to obtain a quarter’s rate. Taking the cube root of that quarter’s growth factor creates the monthly equivalent. The effective annual rate shows the full-year compound change after four quarters.
Banks may apply calendar-day accrual, incomplete-quarter rules or product-specific rounding instead. The SBI recurring-deposit source below supplies product context, not a claim that this equivalent-monthly formula is SBI’s exact maturity method.
Zero interest and the monthly ledger
- Deposits alone at zero interest₹3,00,000.00No division-by-zero shortcut: the result is simply deposit multiplied by deposit count.
- Interest in the default model₹59,663.95This part depends on the entered rate, timing and compounding convention.
Open the schedule to inspect opening balance, deposit, interest and closing balance for every month. Start timing earns interest on the opening balance plus that month’s deposit. End timing earns interest on the opening balance before the new deposit arrives.
CSV contains those unrounded amounts. Printed cells round separately, so adding displayed rows may differ by a few paise from the displayed total. The model accepts one to 120 whole months; those are calculator limits, not bank product availability.
RD or SIP?
Both take a fixed amount every month. An RD's rate is set when you open it; a SIP's return is not known in advance.
An RD suits a known target on a fixed date, because the maturity can be estimated in advance. A SIP calculator can only work from an assumed return, which markets do not guarantee.
For a longer-term, government-backed option with yearly deposits, see the PPF calculator. To check what the maturity buys later, use the inflation calculator.
Common mistakes and excluded charges
Mistake: Apply the full term’s interest to every instalment.
Instead: Let each deposit grow only for the months it remains invested.
Mistake: Treat an illustration as a bank maturity quotation.
Instead: Confirm due dates, incomplete quarters and product rounding with the bank.
Mistake: Read gross interest as the amount available after tax.
Instead: Review applicable tax and deduction rules separately; this calculator does not apply TDS.
Mistake: Ignore missed deposits or premature closure.
Instead: Check the product’s penalties and revised interest terms before relying on a maturity amount.
Methodology and sources
Tests check the annuity formula against separately grown deposits and a month-by-month balance simulation.
The annuity mathematics follows OpenStax. Golden cases cover start and end timing, zero interest and different durations. Actual rates are never fetched or suggested. Source links, review dates and the financial disclaimer follow this explanation.
A separate script also recomputes every test case both ways, to half a paisa. Read how we test our calculators, or browse more money calculators.