RD calculator
₹5,000 a month into a 5-year recurring deposit at 7% matures at about ₹3,59,664 — ₹3,00,000 deposited and ₹59,664 of interest. An RD is the closest thing to a SIP in the banking system, which makes it the fairest comparison there is.
Your recurring deposit
What leaves your bank account every month. Type any amount — the slider is just a shortcut.
An assumption, not a promise. Equity funds are usually modelled at 10–12%; see what rate to assume.
At maturity
What you investWhat compounding adds
| Year | Monthly | Invested so far | Returns | Value at year end |
|---|---|---|---|---|
| 1 | ₹5,000 | ₹60,000 | ₹2,311 | ₹62,311 |
| 2 | ₹5,000 | ₹1,20,000 | ₹9,099 | ₹1,29,099 |
| 3 | ₹5,000 | ₹1,80,000 | ₹20,686 | ₹2,00,686 |
| 4 | ₹5,000 | ₹2,40,000 | ₹37,418 | ₹2,77,418 |
| 5 | ₹5,000 | ₹3,00,000 | ₹59,664 | ₹3,59,664 |
Why an RD earns less than an FD at the same rate
Not a trick, just exposure time — the same reason a SIP trails a lump sum. Your first RD instalment earns for the whole term; the last earns for one month. On average your money is invested for a little over half the period.
Banks compute it instalment by instalment, each compounding quarterly for its own remaining months:
M = Σ P × (1 + r ÷ 4)(n − k + 1) ÷ 3
where n is the total number of monthly instalments and k indexes them. That exponent converts remaining months into remaining quarters, which is why the result is not a clean closed form. This page implements that sum directly rather than approximating it.
RD against an equity SIP: the fairest comparison on this site
Same money, same monthly rhythm, same term. The only differences are the return and the certainty.
| Term | Deposited | RD maturity | SIP projection | Gap |
|---|---|---|---|---|
| 5 years | ₹3,00,000 | ₹3,59,664 | ₹4,12,432 | ₹52.77K |
| 10 years | ₹6,00,000 | ₹8,68,509 | ₹11,61,695 | ₹2.93 L |
| 15 years | ₹9,00,000 | ₹15,88,411 | ₹25,22,880 | ₹9.34 L |
| 20 years | ₹12,00,000 | ₹26,06,913 | ₹49,95,740 | ₹23.89 L |
Read the gap column downward. Over five years the difference is modest and the RD's certainty is worth something real. Over twenty it is enormous — and RD interest is taxed at your slab every year while long-term equity gains are taxed at 12.5% above the annual exemption, which widens it further.
The RD column is guaranteed and the SIP column is not. That is the trade. But the gap at twenty years is the price of certainty, and it is worth knowing what you are paying.
Before you rely on this
An estimate, not a forecast
This is arithmetic applied to assumptions you chose. Mutual funds carry market risk, returns are not guaranteed, and past performance does not indicate future results. Nothing here is personalised advice — for decisions of any size, speak to a SEBI-registered investment adviser.
Questions people actually ask
Is an RD better than a SIP?
For a goal inside two or three years, usually yes — you cannot risk capital you are about to need, and an RD's maturity value is contractual.
For anything beyond about seven years the expected gap becomes very large, and RD interest is taxed less favourably. The table above shows both sides. See also SIP vs RD.
Is RD interest taxable?
Yes, at your income tax slab, on accrual, exactly like FD interest. TDS applies once annual interest crosses the threshold, and the balance is settled when you file.
At a 30% slab a 7% RD is 4.90% after tax, which is below typical inflation.
What if I miss an RD instalment?
Most banks charge a small penalty per missed instalment and may close the account after several consecutive misses, paying out at a reduced rate.
A SIP is more forgiving here — a missed instalment simply means no units bought that month, with no penalty from the fund itself.
Why does my bank quote a different maturity value?
Usually a rounding convention. Some banks round each quarter's interest to the rupee before compounding, and some treat the final part-quarter differently. Those choices produce differences of a few rupees to a few hundred.
The method used here is set out on the methodology page.