RD Calculator
Estimate recurring deposit maturity with monthly instalments, quarterly compounding and an adjustable planning rate. See deposits and gross interest separately.
Start here
- What to enter
- Enter the amount deposited each month, annual interest rate and number of years.
- What the result means
- Maturity combines all monthly deposits and estimated interest; each deposit earns interest for a different time.
See an example & limits
- Simple example
- ₹1,000 deposited every month for 1 year means ₹12,000 deposited, plus interest.
- Keep in mind
- Indicative bank RD model: beginning-of-month deposits and quarterly compounding. Post-office passbook rules, actual dates, missed deposits, tax and penalties can change maturity.
Calculate your result
Enter your numbers. Your estimate and charts update as you make changes.
Recurring Deposit
Indicative bank RD: month-start instalments and quarterly compounding, before tax. Payment dates, bank rounding and Post Office fractional-quarter rules can differ.
- Maturity
- ₹7,09,908
- ₹7.1L
- Total deposited
- ₹6,00,000
- Interest earned
- ₹1,09,908
What your numbers mean
Interest adds ₹1,09,908 — 18.3% on top of your deposits.
That's lower than the 6.50% rate might suggest because later instalments have less time to earn interest.
Running the RD one more year would grow maturity by ₹1.72L.
You'd deposit ₹1,20,000 more; the remaining ₹51,567 is extra interest on a bigger balance.
After 6% inflation, your real return is about 0.6% a year.
This assumes 6% yearly inflation; RD interest is also taxed at your income-tax slab rate, so the post-tax real return is thinner.
RD balance growth
Projected value compared with Amount invested. Amounts in rupees.
View chart data
| Year | Amount invested | Projected value |
|---|---|---|
| 0 | ₹0 | ₹0 |
| 1 | ₹1,20,000 | ₹1,24,286 |
| 2 | ₹2,40,000 | ₹2,56,851 |
| 3 | ₹3,60,000 | ₹3,98,244 |
| 4 | ₹4,80,000 | ₹5,49,054 |
| 5 | ₹6,00,000 | ₹7,09,908 |
Understand your calculation
A Recurring Deposit, or RD, is the SIP equivalent for fixed income. You commit a fixed monthly amount, the bank or post office credits interest at a contracted rate, and at maturity you receive the total deposits plus accumulated interest. RDs are typically used by salaried Indians who want disciplined monthly saving without the volatility of mutual funds. The RD calculator on this page tells you the maturity value, total deposits and interest earned for any combination of monthly amount, rate and tenure.
Why use the RD Calculator
RDs are simple but the maths can mislead. The maturity is not just the monthly amount times the number of months. Each month's deposit earns interest for a different length of time, with the first deposit compounding longest and the last deposit barely compounding at all. The calculator does this iteration correctly so you see the actual maturity rather than a back of the envelope estimate.
How to use the RD Calculator
- 1
Enter the monthly deposit
How much you can commit to deposit every month. RDs accept amounts from 100 rupees onwards in most banks. Post office RDs have a minimum of 100 rupees per month.
- 2
Enter the interest rate
Use the rate offered by your bank for the chosen tenure. Most major banks publish their RD rates online, and many offer senior citizens a slightly higher rate.
- 3
Set the tenure in years
RD tenures range from 6 months to 10 years. The most common tenures are 1, 3 and 5 years. Post office RD has a fixed 5 year tenure.
- 4
Read the maturity and interest earned
Maturity is the projected gross balance. Interest is maturity less total deposits. TDS is only a credit against final tax; do not deduct both TDS and full slab tax twice.
Worked example
₹5,000 a month for 5 years at 6.5%
The quarterly rate is 6.5% ÷ 4 = 1.625%. The code converts it to an equivalent monthly factor: 1.01625^(1/3) − 1 ≈ 0.5388% a month. Each ₹5,000 goes in at the start of the month, and the whole balance then grows by that factor. After 60 months you've deposited ₹3,00,000 and the balance is ₹3,54,954.
- Total deposits
- ₹3,00,000
- Interest earned
- ₹54,954
- Maturity value
- ₹3,54,954
Interest is about 18% of what you put in, much less than a ₹3,00,000 FD would earn over the same five years, because the average rupee in an RD is invested for only about half the tenure.
How it's calculated
The calculator steps through the tenure one month at a time: balance = (balance + monthly deposit) × (1 + m). Adding the deposit before applying growth means every instalment is treated as paid at the start of the month, so even the last one earns a month's interest.
The monthly factor is m = (1 + r/400)^(1/3) − 1, where r is the annual rate in percent. Three months at m give exactly one quarter's growth at r/4, so the result matches quarterly compounding while letting deposits enter every month, including in part quarters.
Total deposits are monthly deposit × months, and interest is maturity minus deposits. The model is gross of TDS and tax. Banks and the Post Office may use their own date conventions, rounding or published tables, so the actual payout can differ by a few rupees.
Frequently asked questions
How is RD interest calculated?
Each start-of-month instalment accrues for its remaining term. The model uses quarterly compounding, with an equivalent monthly factor of (1 + annual rate/400) to the one-third power. The final instalment earns one month's interest. Actual issuer calendars and Post Office scheme tables may differ.
Is RD interest taxable in India?
RD interest is taxable at your slab rate. From 1 April 2025, the usual annual bank/co-operative bank/notified post-office TDS thresholds are ₹50,000 and ₹1,00,000 for senior citizens. TDS is normally ten percent with valid PAN and is credited against final tax; qualifying Form 15G/15H declarations can prevent withholding. Confirm the particular issuer's obligations.
Should I take an RD or a SIP?
RD can suit short goals where fixed-rate certainty matters. SIP can suit longer goals if you can tolerate market volatility. RD interest is taxable at slab rate, while equity mutual fund outcomes depend on market performance and tax rules. The right choice depends on your horizon and risk tolerance.
Can I miss a monthly RD installment?
Most banks charge a small penalty (typically 1 to 2 rupees per 100 rupees per month of delay) for missed installments. Post office RD allows up to 4 missed installments before the account becomes inactive. Reactivation requires paying the missed amounts plus a penalty. Avoid missing installments if you can.
Is there a tax saver RD?
An ordinary RD does not qualify for Section 80C. Eligible alternatives include a five-year tax-saver FD, PPF, NSC and other specified investments, within the shared deduction limit under the old regime.
Can I prematurely close an RD?
Yes, with a penalty. Most banks reduce the applicable rate by 0.5 to 1 percent for premature closure. Post office RD allows premature withdrawal after 3 years, with the savings account rate applied instead of the RD rate. Premature closure usually defeats the purpose of an RD, so commit to the tenure if possible.
Is post office RD better than bank RD?
Post Office RD rates are notified by the government each quarter, so check the current rate on the India Post or National Savings site. Bank RDs offer different tenures and issuer-specific rates; this calculator's 6.5 percent bank default is illustrative. Post Office deposits have sovereign backing; bank deposits are insured only within the DICGC limit of ₹5 lakh per depositor per bank, including interest.