Monthly Deposit
Interest Rate
Loan Tenure
Total Payment
Invested Amount
Interest Earned
Invested Amount
Interest Earned
Monthaly Investement
Interest Rate
Period
Total Payment
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Difference between FD and RD
The major difference between FD and RD is that in FD, you invest a lump sum amount once and then wait for it to mature and give you investing benefit after 6 months to a few years. Whereas in RD, you make fixed monthly deposits into the RD account for a predetermined period, typically ranging from 6 months to 10 years. Yes the maximum tenure of taking out an RD is 10 years.
Let’s understand with an example
Suppose, you decide to invest in a Bank and take up RD where you deposit a fixed amount each month for a specified tenure, and the bank offers a certain interest rate compounded quarterly.

Monthly deposit amount (PMT) = Rs. 5,000

Annual interest rate (R) = 7% per annum or 0.07

Compounding frequency = Quarterly (interest compounded 4 times a year)

Tenure = 3 years (36 months)
Step 1: Formula for Maturity amount
Formula: Ai = P * (1 + R/N) ^{N * (t  i1/12)}
Ai: Maturity amount for the iiith deposit
P: Monthly deposit (5000 INR)
R: Annual interest rate (0.07)
N: Compounding frequency (4)
t: Tenure in years (3)
i: Month number
Step 2: Calculate quarterly interest rate
Quarterly Rate: R/N: 0.07/4 = 0.0175
Step 3: Maturity Amount Calculation for 1st Month
A1 = P*(1+0.0175) ^{4*3}
A1=5000×(1.0175)12
A1=5000×1.231439
A1=6157.20 INR
Step 4: Maturity Amount Calculation for 2nd Month
A2=P*(1+0.0175) ^{4 *( 3  ½)}
A2=5000×(1.0175) ^{11.6667}
A2=5000×1.224339
A2=6121.69 INR
Step 5: Maturity Amount Calculation for 3rd Month
A3=P×(1+0.0175) ^{4 * (3  2/12)}
A3=5000×(1.0175) ^{11.3333}
A3=5000×1.217267
A3=6086.39 INR
General calculations for all months
Ai = P * ( 1+ 0.0175) ^{4 * (3  i1/12)}
Example for the 4th month (i = 4)
A4 = 5000 * ( 1.0175) ^{4 * (33/12)}
A4 = 5000 * ( 1.0175) ^{11}
A4=5000×1.210224
A4=6051.30 INR
Summing up all deposits
To find the total maturity amount, sum the maturity amounts for all 36 monthly deposits a shown above .
Total maturity amount
The total maturity amount will come to 200,686.49 INR
How to use our RD Calculator
1) Slide the scale or directly type the amount you wish to invest monthly for taking up a Recurring Deposit (RD) in your bank.
2) Slide the scale or write the rate of interest you are expecting at the time of investing.
3) Tenure, choose month or year option and accordingly type the desired number.
4) Click on calculate and you will get a summary of the calculation with the Total Maturity Amount highlighted at the end of the table. Click on report button to get a deeper understanding.