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What Is a Recurring Deposit Calculator?

Published On Dec 31, 2021 10:00 AM By InsuranceDekho

A RD Calculator as the name suggests, is used to find out the maturity value of the recurring deposit. There is a simple formula that is provided with which interest on a Recurring Deposit investment can be calculated. However, there are a few aspects that customers must keep in mind prior to calculating the interest.

Customers must look at each month’s installment as a separate deposit. Compounding only happens at the end of every financial quarter and not every month. Each monthly deposit will earn a different amount of interest. The amount procured at maturity is the total of enhanced value of each month’s deposit.

Formula for Calculating Interest on Recurring Deposit

As mentioned previously, compound interest on a Recurring Deposit amount is only added after the first quarter. Financial Quarters in a year are determined as follows -

Quarter 1 is from April to June

Quarter 2 is from July to September

Quarter 3 is from October to December

Quarter 4 is from January to March

Compounding occurs only after every quarter, hence until then a simple interest calculation will be applicable. For example, in case an individual avails a Recurring Deposit scheme in the month of February, the amount will only provide a simple interest until the month of March, after which interest will be compounded.

The formula used for Simple Interest is -


I stands for Interest

P stands for Principal

R is annual interest rate applicable(in decimal)

T is the tenure or time period of the scheme

The formula used for calculating Recurring Deposit Interest, provided by the Indian Bank Association, is as follows-

M =R [ (1+i)n – 1]


1- (1+i) -?

M stands for Maturity value

R stands for Monthly Installment

i stands for rate of interest divided by 400

n stands for number of quarters

Advantages of Using the RD Calculator

Some of the main advantages of using the RD Calculator are mentioned below:

  • Accurate estimations are provided.
  • Saves time and is convenient.
  • You can plan your finances in the long run.

Process to use the Online RD Calculator

The step-by-step procedure to use the online RD Calculator is mentioned below:

  • Enter the amount that you will deposit every month.
  • Enter the tenure of your RD investment.
  • In case you are using the RD Calculator offered by banks, the rate of interest will be given. If you are using the RD Calculator offered by third-party websites, the interest rate must be entered.
  • Click on ‘Calculate’. The results will be displayed immediately.

How Can One Calculate RD Interest Online?

Customers can easily calculate the interest applicable and maturity amount that can be procured from a Recurring Deposit scheme by using the formulas mentioned above.

However, customers can also calculate the same online by visiting the website of the bank that they have procured their Recurring Deposit scheme from or most other banks, such as ICICI Bank, SBI Bank and so on. These banks generally have an online calculator which can be used to calculate interest.


The online RD calculator is used in the following way (the figures can be entered using a slider or by typing in the field, as per the calculator used). Input the amount that you will be depositing on a monthly basis. Enter the prevailing rate of interest for the tenure you have chosen and then enter the desired tenure. The amount on maturity will be instantly generated and displayed in the box.

Do read - Factors That Help Choose A Right Investment Option 

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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