What if you saved the same amount every month and earned interest on each deposit? That is the idea behind a recurring deposit, often called an RD. Banks in India and many other countries offer this account for steady, small savers.
The Recurring Deposit Calculator shows what your monthly deposits grow to by the end of the term. Enter a monthly deposit, a yearly rate, and a tenure in months. You get the maturity value, the total interest earned, and the total cash you put in.
Table of Contents
- What the Calculator Does
- How to Use It, Step by Step
- The Recurring Deposit Formula
- Worked Example
- How to Read the Results
- How a Recurring Deposit Compares With US Savings Options
- Limitations and Assumptions
- FAQs About the Recurring Deposit Calculator
What the Calculator Does
The tool takes three inputs and returns three results when you press the button. It also runs once on page load with sample numbers, so you see a result right away.
- Maturity Value ($): the total you would hold when the deposit ends.
- Total Interest Earned: the maturity value minus every dollar you deposited.
- Total Saved Cash: your monthly deposit times the number of months.
- Quarterly compounding: interest is added four times a year, a common RD practice.
- Calculate RD Maturity button to refresh the results after you change an input.
How to Use It, Step by Step
- Type your planned monthly amount in Monthly Deposit ($). It must be at least $50, and the sample is $500.
- Enter the yearly rate your bank quotes in Annual Interest Rate (%). Use 0 to 30, and the sample is 7.0.
- Enter the length of the plan in Tenure (Months). Use 3 to 120 whole months, and the sample is 36.
- Press Calculate RD Maturity to update the three result cards.
- Change one input at a time to see which one moves the result most.
Use whole months for the tenure. A decimal such as 24.5 shows a message asking for a whole number, and no result appears.
The Recurring Deposit Formula
Each monthly deposit earns interest for the months left until maturity. The tool grows every deposit on its own, then adds them all together.
Monthly Deposit×(1 + Rate ÷ 4) ^ (Months Left ÷ 3)→Add Up All Deposits=Maturity Value
- Rate is the annual rate as a decimal, so 6.5% becomes 0.065. Dividing by 4 gives the quarterly rate.
- Months Left runs from the full tenure for the first deposit down to 1 for the last.
- Dividing months left by 3 turns months into quarters, including part quarters.
- Total Saved Cash = Monthly Deposit × Tenure (Months).
- Total Interest Earned = Maturity Value - Total Saved Cash.
Your first deposit earns interest for the whole term. Your last deposit earns only one month of interest.
Worked Example
Dev wants a cushion for a used car down payment in two years. He sets up a $300 monthly deposit at an example rate of 6.5% for 24 months.
| Result | How It Is Found | Output |
|---|
| Total Saved Cash | $300 × 24 months | $7,200.00 |
| Maturity Value | 24 deposits, each grown for its months left | $7,705.52 |
| Total Interest Earned | $7,705.52 - $7,200.00 | $505.52 |
Now see how time changes the picture at the same $300 and 6.5%. Each row is a separate run of the tool.
| Tenure | Total Saved | Maturity Value | Interest |
|---|
| 12 months | $3,600.00 | $3,728.59 | $128.59 |
| 24 months | $7,200.00 | $7,705.52 | $505.52 |
| 36 months | $10,800.00 | $11,947.31 | $1,147.31 |
| 60 months | $18,000.00 | $21,297.25 | $3,297.25 |
Five times the months brings in more than 25 times the interest. Longer plans let early deposits compound for many more quarters.
How to Read the Results
Maturity Value ($) is the payout you would see at the end, before any tax or fees. It is the number to match against a savings target.
Total Interest Earned is what the bank pays you for the use of your money. Compare it across rates and tenures to spot the better offer.
Total Saved Cash is your own money, with no interest added. Need a set amount by a set date? Our savings goal calculator works backward to a monthly figure.
How a Recurring Deposit Compares With US Savings Options
US banks rarely use the term recurring deposit. The closest habit is an automatic monthly transfer into a savings account. Most certificates of deposit take one lump sum instead.
If you have a lump sum today, the fixed deposit maturity calculator fits better. To compare rates quoted with different compounding, convert them with the APY calculator.
The future value calculator gives another view of regular savings. It can help you check a plan that compounds on a different schedule.
Interest is only part of the story, since prices rise too. The real rate of return calculator shows what your rate is worth after inflation. Browse more tools in the finance and business calculator hub.
Limitations and Assumptions
- Interest always compounds quarterly. You cannot pick monthly or yearly compounding.
- Each deposit counts as made at the start of its month. The first one earns for the full term.
- The rate stays fixed for the whole term. Missed deposits, late fees, and early closing penalties are not modeled.
- Taxes on interest are not included. Your real payout may be lower.
- A blank box or a value outside the limits shows a short message, and all three cards read N/A.
- Results update only when you press the button, so check that the cards match your latest inputs.
FAQs About the Recurring Deposit Calculator
What is a recurring deposit?
It is a bank account where you deposit a fixed amount every month for a set term. The bank pays interest, and you collect the total at maturity.
How often does this calculator compound interest?
It compounds quarterly, four times a year. Each deposit grows by one quarter of the annual rate for every three months it stays in.
Why is my interest so small in the first year?
Most of your money arrives late in a short plan. Later deposits sit in the account for only a few months, so they earn little.
Can I use this for a monthly transfer into a US savings account?
Yes, as a rough estimate. Many US savings accounts compound daily or monthly, so your bank's figure may differ a little from this tool.
Does the maturity value include taxes?
No. Interest is often taxable income, and the tool does not subtract any tax. Check your own tax rules before you plan around the payout.
What happens if I enter a tenure that is not a multiple of 3?
The tool still works. It treats leftover months as part of a quarter. A 13 month first deposit counts as 4.33 quarters.
This calculator gives planning estimates only and is not financial advice. Reviewed for general accuracy by Prof. Dr. Khalil Mudassar, PhD.