Recurring Deposit (RD) Calculator
Maturity value of a recurring deposit — a fixed amount saved every month, compounded quarterly
Interactive Sandbox
Adjust values in real-time and observe mathematical cause-and-effect
Exponential Compounding Growth: Returns generate subsequent returns over time t, rapidly accelerating capital growth.
Variable Mechanics
Roles, constraints & impacts
Monthly Deposit
Formula Parameter
Annual Interest Rate
Formula Parameter
Tenure
Formula Parameter
At a Glance
Gotchas, units & real-world use
Formula Nature & Mechanics
Exponential Compounding Growth: Returns generate subsequent returns over time t, rapidly accelerating capital growth.
Common Mistakes & Traps
- Entering annual percentage rate (e.g. 7%) as 7 instead of converting to decimal 0.07.
- Neglecting the compounding frequency (n): monthly compounding produces higher yield than annual.
- Ignoring inflation drag when evaluating long-term nominal returns.
Dimensional Analysis & Units
Currency × (1 + rate)^time = Future Currency ($)
Real-World & Industry Application
Retirement 401(k) / Roth IRA compounding, mortgage amortization schedules, bond yield analysis, and inflation depreciation modeling.
Worked Example: Recurring Deposit (RD)
Given:
- monthly = 5000
- rate = 7
- years = 5
- 60 monthly deposits of $5,000; the first earns interest for 60 months, the last for 1 month
- Each deposit grows as R × (1 + 7% ÷ 4)^(4 × months ÷ 12)
- Sum of all 60 deposits at maturity = $359,663.95
- Total deposited = $300,000, interest earned = $59,663.95
Answer: 359663.95
Frequently Asked Questions
What is the Recurring Deposit (RD) formula?
M = Σ R × (1 + r/4)^(4 × months left ÷ 12). Maturity value of a recurring deposit — a fixed amount saved every month, compounded quarterly.
How do I calculate Recurring Deposit (RD)?
Enter Monthly Deposit (monthly), Annual Interest Rate (rate), Tenure (years) into the calculator. It applies M = Σ R × (1 + r/4)^(4 × months left ÷ 12) and shows every step of the working.
