About the RD Calculator (Recurring Deposit)
This RD calculator works out the maturity amount of a recurring deposit — the savings scheme offered by Indian banks and India Post where you deposit a fixed amount every month for a fixed tenure. Enter the monthly instalment, the annual interest rate and the number of months, and it shows the maturity value, your total deposits and the interest earned, plus how the balance builds up year by year.
It follows the method banks and the Post Office use: interest is compounded quarterly, and each instalment earns interest from the month it is deposited until maturity. That makes it suitable for SBI, HDFC, ICICI and other bank RDs as well as the 5-year Post Office RD, though a bank’s or India Post’s own maturity table can differ by a few rupees because of rounding and deposit-date conventions. Use it to compare RD rates between banks, to decide between an RD and a SIP, or to plan a goal such as a holiday or gadget purchase.
Results assume every instalment is paid on time at the start of each month and the rate stays fixed for the tenure (RD rates are locked when you open the account). Interest is taxable as income from other sources, and banks deduct TDS when your total interest crosses the threshold. The default 6.7% is the Post Office 5-year RD rate, which the National Savings Institute lists for every quarter from 1 October 2023 to 30 September 2026; later quarters may differ, and bank RD rates vary, so check the current rate. India Post’s own maturity tables can differ from this formula by a few rupees because of rounding.
With the default inputs, the maturity value is ₹356,829.14. Change any value above to recalculate instantly.
How to use the rd calculator (recurring deposit)
- 1Enter the amount you will deposit each month.
- 2Enter the RD interest rate offered by your bank or the Post Office (6.7% for the Post Office RD up to September 2026).
- 3Choose the tenure in months.
- 4Read the maturity value and the interest earned.
- 5Compare rates from several banks to find the best RD.
Formula and method
Each monthly instalment P is treated as a separate deposit that earns interest compounded quarterly from the month it is paid until maturity. An instalment that stays invested for m months grows by (1 + r/400) raised to m/3, where r is the annual rate in percent and m/3 is the number of quarters. The maturity value M is the sum of all instalments’ grown values.
This is equivalent to the formula many banks publish, M = P × [(1 + i)^n − 1] ÷ [1 − (1 + i)^(−1/3)], where i = r/400 and n is the number of quarters. It assumes deposits on the same date each month and no missed instalments; late payments attract a small penalty at most banks.
- M
- Maturity value
- P
- Monthly instalment
- r
- Annual interest rate in percent
- mₖ
- Months instalment k earns interest
Worked examples
Post Office RD: ₹5,000 a month for 5 years at 6.7%
Sixty instalments of ₹5,000 total ₹3,00,000. With quarterly compounding at 6.7%, the first instalment earns interest for all 60 months and the last for one month. The maturity value is about ₹3,56,829, so interest adds roughly ₹56,829.
₹10,000 a month for 1 year at 7%
A one-year RD of ₹10,000 a month builds ₹1,20,000 of deposits and about ₹4,621 of interest, maturing at about ₹1,24,621.
₹2,000 a month for 3 years at 7.25%
Depositing ₹2,000 for 36 months puts in ₹72,000. At 7.25% compounded quarterly the RD matures at about ₹80,590.
Frequently asked questions
How is RD interest calculated?+
Banks and the Post Office compound RD interest quarterly. Each monthly instalment earns interest from its deposit date until maturity, so earlier instalments earn more. This calculator adds up the grown value of every instalment to give the maturity amount.
Is RD interest taxable?+
Yes. RD interest is added to your income and taxed at your slab rate under “income from other sources”. Banks deduct TDS at 10% (if PAN is provided) when total interest in a financial year crosses the TDS threshold; you can submit Form 15G or 15H if your income is below the taxable limit.
What happens if I miss an RD instalment?+
Most banks charge a small penalty for each late instalment, and several consecutive missed instalments can lead to the account being closed. The Post Office charges a default fee per ₹100 per month of delay and may discontinue the account after repeated defaults.
Is RD better than SIP?+
An RD offers a guaranteed, fixed return and suits short-term goals and conservative savers. An equity SIP has no guaranteed return but has historically delivered higher long-term growth. Many people use an RD for goals under three years and SIPs for longer goals.
Can I withdraw an RD before maturity?+
Yes, most bank RDs allow premature closure, usually with a penalty of about 0.5–1% on the applicable rate. Post Office RDs can be closed prematurely after three years, with simple interest at the Post Office savings account rate instead of the RD rate.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.