Recurring Deposit calculator

FD Calculator
Final Amount:
Total Interest:

A Recurring Deposit is systematic investment plan accepted by various banks. An RD can be opened directly by visiting the bank or online through net banking or mobile banking facilities. Through recurring deposits, we can invest a fixed amount every month for a particular period (ranging from a few months to years) and the banks offer varying interest rates based on the investment period. Once the investment period is finished, invested amount along with the total interest gets credited back to the account.

Recurring deposits are considered a safer form of investment and offers fairly decent returns. Amount invested in recurring deposits gets locked for the investment period, and penalties may be applied if we break the RD before maturity. Interest earned from RD are taxable.

Below is an RD calculator to find the Maturity Amount and Total Interest. Enter the Monthly Installment, Expected interest Rate and Number of Months of investment. Then click the Calculate button.

Calculation Formula

Recurring deposits are done as monthly installments for a longer period of time. For calculation, think of each RD installment as a fixed deposit. Adding all these amounts together will give us the final amount.

Final Amount = [P * ( (1 + (r/100/f) ^ ( f * m/12) )] + [P * ( (1 + (r/100/f) ^ ( f * (m - 1)/12) )] + ... + [P * ( (1 + (r/100/f) ^ ( f * 1/12) )]

  • PMonthly installment amount
  • rRate of interest
  • mNumber of months
  • fFrequency of interest addition

f is the frequency at which interest gets added to principal amount. For most banks it is quarterly. That means 4 times a year. So f is 4. For our calculation, we will use this value.

Example
  • P10,000
  • r10%
  • m12
  • fQuarterly = 4

Final Amount = 10000 * ( (1 + (10/100)/4) ^ (4 * 12/12) ) + 10000 * ( (1 + (10/100)/4) ^ (4 * 11/12) ) + ... + 10000 * ( (1 + (10/100)/4) ^ (4 * 1/12) )
= 10082.65 + 10165.98 + ... + 11038.13 = 126646