This recurring deposit calculator is for anyone in Nepal who deposits a fixed amount every month in a bank RD account and wants to know exactly how much they’ll receive at the end — total maturity value, interest earned, and a full month-by-month breakdown.
Banks tell you the interest rate but rarely show you the final number upfront. This RD calculator does that in seconds.
RD Calculator
Recurring Deposit · Monthly Deposit · Quarterly Compounding (NRB Standard)
* Interest compounds quarterly by default as per NRB standard. Monthly deposits assumed at start of each month.
How does RD work in Nepal?
A Recurring Deposit (RD) in Nepal requires you to deposit a fixed amount every month for a chosen tenure. Interest compounds at the selected frequency — monthly, quarterly, semi-annually or annually. Quarterly compounding is the Nepali banking standard (NRB). At maturity, you receive all deposited amounts plus accumulated interest in a lump sum.
RD Formula with Compounding Frequency
For a given compounding frequency f (times per year), the effective monthly rate is: i = (1 + R / (f × 100))^(1/(12/f)) − 1. The maturity value using beginning-of-period deposits (annuity-due) is: M = P × (1 + i) × [(1 + i)^n − 1] / i, where P = monthly deposit and n = total months. Higher compounding frequency means slightly more interest earned.
How RD Works in Nepal
A recurring deposit works simply — you commit to depositing a fixed amount every month for a set period. At maturity, you get back everything you deposited plus accumulated interest in a lump sum.
What most people don’t know is that RD interest in Nepal compounds quarterly by default. That’s the NRB standard all commercial banks follow. Quarterly compounding gives you slightly more than simple interest because interest earned gets added to your principal every three months and starts earning interest itself.
The difference between monthly and quarterly compounding sounds small but over 5-7 years it adds up to a noticeable amount — which is why NRB mandated it as the minimum standard.
How to Use the Recurring Deposit Calculator — Exact Steps
Duration preset buttons At the top you’ll see quick buttons — 1 Yr, 2 Yr, 3 Yr, 5 Yr, 7 Yr, 10 Yr. Tap one to fill the duration field instantly. These cover the most common RD tenures Nepali banks offer.
Monthly Deposit Enter the amount you plan to deposit every month. Slider goes from Rs 500 to Rs 1,00,000. Type directly or drag. This is what you commit to paying each month for the full duration.
Annual Interest Rate Enter the interest rate your bank is offering on the RD account. Slider runs from 1% to 15%. Check your bank’s current RD rate before entering — rates vary between commercial banks, development banks, and finance companies in Nepal.
Compounding Frequency Choose how often interest compounds — Monthly, Quarterly, Semi-Annual, or Annually. Keep it on Quarterly for calculations matching NRB standard and what most Nepali banks apply. Switch to monthly or semi-annual only if your bank specifically states a different compounding frequency.
RD Duration Set the tenure in months. Slider goes from 3 to 120 months (3 months to 10 years). If you used a preset button above this is already filled. Adjust it here for any duration that doesn’t match the presets — say 18 months or 36 months.
Click Calculate Maturity
Three results appear at the top — Maturity Value, Total Deposited, and Interest Earned. The Maturity Amount shown below is your final take-home figure when the RD matures.
Scroll down and click Month-by-Month Breakdown to see the full table. Toggle between Monthly view and By Year view. Each row shows your running deposited amount, interest accumulated, and total portfolio value at that point — useful for seeing exactly how the interest builds up over time.
Recurring Deposit Calculation Formula Nepal Uses
The formula behind this calculator:
Effective monthly rate: i = (1 + R ÷ (f × 100))^(1÷(12÷f)) − 1
Where R is annual interest rate and f is compounding frequency per year (4 for quarterly).
Maturity value: M = P × (1 + i) × [(1 + i)^n − 1] ÷ i
Where P is monthly deposit and n is total months.
This is the annuity-due formula — deposits assumed at the start of each month, which is standard for NRB-compliant RD calculations. The result here will match what your bank shows at maturity.
Quick Example
Rs 10,000 monthly. 8% annual rate. 3 years. Quarterly compounding.
Total deposited: Rs 3,60,000 Interest earned: approximately Rs 47,800 Maturity value: approximately Rs 4,07,800
Without compounding it would be roughly Rs 43,200 in interest. The quarterly compounding added around Rs 4,600 extra over three years. Doesn’t sound massive but on Rs 50,000/month over 7 years the difference becomes significant.
RD vs Fixed Deposit — Which One?
Both are safe, bank-guaranteed products. The difference is how you deposit.
FD requires a lump sum upfront. RD lets you build it month by month — better for salaried people who don’t have a large amount sitting idle but can commit to a monthly discipline.
Interest rates on RD are slightly lower than FD in most Nepali banks, but the ability to start small and build regularly makes RD more practical for most working people.
FAQs
What happens if I miss a monthly deposit? Most banks in Nepal charge a small penalty for missed RD installments — usually a few hundred rupees or a small percentage of the missed deposit. Some banks allow a grace period. Check your specific bank’s RD terms before opening the account.
Can I close the RD before maturity? Yes but premature closure usually comes with a penalty — typically 1-2% reduction on the applicable interest rate. The calculator shows full-tenure maturity; premature closure will give you less than what’s shown.
Why is quarterly compounding the default? NRB mandates quarterly compounding as the minimum standard for recurring deposits in Nepal. Most banks follow this. If your bank compounds more frequently, your actual return will be slightly higher than what standard quarterly calculations show.
Does this calculator account for tax on RD interest? No. Interest earned on RD is taxable as per IRD guidelines. Banks typically deduct TDS on interest at source. The maturity value shown is before tax deduction — your actual take-home will be slightly less depending on your tax bracket.
Which banks in Nepal offer the best RD rates? Development banks and finance companies generally offer slightly higher RD rates than commercial banks. Always compare before opening — even a 0.5% difference on a long-tenure RD adds up.
Put your numbers into the recurring deposit calculator above and check the month-by-month table. Knowing your maturity figure before you commit to the tenure helps you plan around it — especially if it’s tied to a goal like a vehicle purchase, education fees, or a down payment.
Interest calculations use NRB standard quarterly compounding. Actual bank returns may vary slightly by institution.