ToolFoxRD Calculator
Estimate the maturity value and interest on a recurring monthly bank deposit.
- Maturity value
- ₹62,275
- Total interest
- ₹2,275
- Total invested
- ₹60,000
How it works
Each monthly instalment earns interest for a different number of months, so the total interest is R × n(n+1)/2 × (annual rate ÷ 1200), where R is the monthly deposit and n the number of months — the standard sum-of-months approximation banks quote. Maturity value is the total deposited (R × n) plus that interest. Banks actually compound interest quarterly, so the real payout differs from this estimate by a few rupees.
Example
Depositing ₹5,000 every month for 12 months at 7% per year earns ₹2,275 in interest, maturing at ₹62,275 — close to, but not exactly, what your bank statement will show because of quarterly compounding.
Frequently asked questions
Why doesn't this match my bank's RD calculator exactly?
Banks compound RD interest quarterly rather than using the simple sum-of-months formula, so real payouts differ by a small amount — usually a few rupees to a few hundred on larger deposits.
What is the sum-of-months formula actually doing?
Money deposited in month 1 earns interest for all n months, month 2's deposit earns interest for n−1 months, and so on — summing that sequence gives n(n+1)/2 month-equivalents of interest.
Is RD interest taxable?
Yes — like FD interest, RD interest is added to your income and taxed at your slab rate, with TDS deducted by the bank beyond a threshold.
Can I change the deposit mid-way?
No — this calculator assumes a fixed monthly instalment for the whole tenure, matching how standard RD accounts work.
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