ArthSangrah

Recurring Deposit Calculator

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Monthly Investment ( ₹ )
Rate of Interest (% p.a.)
Time Period (Years)
Note: To see the chart, please view this in a larger screen
Calculated Returns
Invested Amount
₹ 18,00,000
Estimated Returns
₹ 1,91,219
Total Value
₹ 19,91,219
What is a Recurring Deposit?
A Recurring Deposit (RD) is a popular savings scheme that allows individuals to invest a fixed amount every month for a predetermined period and earn interest on their deposits. It is an excellent choice for people looking to build disciplined savings while earning assured returns. Whether you are a salaried professional, student, or retiree, an RD helps you grow your savings steadily over time.
Features
  • Fixed Monthly Investment - Deposit a set amount every month
  • Fixed Interest Rate - The interest rate remains unchanged throughout the tenure
  • Flexible Tenure Options - Typically ranges from 6 months to 10 years
  • Assured Returns - Safe investment with predictable earnings
  • Low-Risk Savings Option - No market-linked fluctuations
Benefits
  • Guaranteed Returns - Unlike market investments, RD offers assured earnings
  • Low Minimum Investment - Start with as little as ₹ 100 - ₹ 500 (varies by bank)
  • Flexible Tenure - Choose a period that suits your financial goals
  • Interest Compounding - Some banks offer quarterly or half-yearly compounding
  • Liquidity Support - Option to take a loan against the RD balance
Eligibility & Requirements
  • Who can open an RD Account?
    • Individuals (Residents and NRIs)
    • Minors (with guardian)
    • Senior Citizens (may get higher interest rates)
  • Minimum Deposit Amount
    • Varies by bank, typically ₹ 100 - ₹ 500
  • KYC Documents Required
    • Identity Proof (Aadhaar, PAN, Passport, etc.)
    • Address Proof
    • Recent Passport-Sized Photograph
How to Calculate Recurring Deposit Returns?
The formula for compount interest is:
A=P×(1+rn)ntA = P \times (1 + \frac{r}{n})^{nt}
where,

  • A=Final AmountA = Final \space Amount
  • P=Monthly InvestmentP = Monthly \space Investment
  • r=Rate of Interestr = Rate \space of \space Interest
  • n=Number of times interest is compounded per yearn = Number \space of \space times \space interest \space is \space compounded \space per \space year
  • t=Time in Yearst = Time \space in \space Years


In an RD, however, deposits happen monthly instead of a lump sum at the start.

Each deposit accrues interest differently because they are made at different times:
  • The first deposit earns interest for the entire period (e.g., 12 months if tenure is 12 months).
  • The second deposit earns for (12-1) months
  • The third deposit earns for (12-2) months
  • ... and the last deposit earns for just 1 month
Each deposit accumulates interest as follows:
Ak=P×(1+rn)N−kA_k = P \times (1 + \frac{r}{n})^{N-k}
where,

  • N=Total number of months (tenure)N = Total \space number \space of \space months \space (tenure)
  • k=Installment number (1st,2nd,etc.)k = Installment \space number \space (1st, 2nd, etc.)
  • P=Monthly depositP = Monthly \space deposit


Summing up all deposits, we can arrive at a compact formula,
A=P×∑i=0N−1(1+rn)N−iA = P \times \sum_{i=0}^{N-1} (1 + \frac{r}{n})^{N-i}


where,

∑i=0N−1\sum_{i=0}^{N-1}

is the sum of all the accumulated amounts from the 1st month to the last month.

You can use this formula to calculate the total accumulated sum after the entire period. But using this formula is very complicated and difficult to calculate by hand.

Hence, you can use our RD Calculator to calculate the total accummulated sum of money by just a few clicks. Start Saving from Today!