Recurring Deposit (RD) Calculator

A recurring deposit calculator is used to find out the maturity amount/ value of a recurring deposit (RD). There is a simple formula which helps in calculation of maturity amount and interest on an RD. There are some things that the customers need to take care of for the calculation of RD amount.

Customers should look each month's installment as a separate deposit. Compounding takes place quarterly, and not monthly. Every monthly deposit earns a different interest and the maturity is the sum total of the maturities (enhanced values) of different months.

Formula used to calculate compound interest on each RD deposit is:

A = P (1 + r/n) ^ nt


  • A: It depicts the final amount procured
  • P: It signifies principal or the amount that has been invested initially
  • R: It is the annual interest rate, counted in decimal
  • n: This stands for the number of times that interest has been compounded per year
  • t: This alphabet denotes tenure of the scheme

The formula for simple interest is:

I=P * r * t


  • I here means the Interest
  • P signifies the Principal
  • Rrepresents the annual interest rate applicable(in decimal)
  • Tdepicts the tenure or time period of the scheme

As per IBA (Indian Bank Association) the formula used to calculate RD interest is:

M =R [(1+i) n– 1]


  • Msignifies Maturity value
  • Rrepresents the Monthly Instalment
  • Irefers to the rate of interest divided by 400 (4*100, 4 is the number of quarters)
  • Ndepicts the number of quarters