RD Calculator – Recurring Deposit Maturity Calculator
Find the maturity value and interest earned on your recurring deposit instantly.
RD Calculator
What is an RD calculator?
A recurring deposit (RD) lets you save a fixed amount every month with a bank or post office and earn a guaranteed interest rate. It is ideal for salaried savers who cannot put away a large lump sum. Our RD calculator shows the maturity value, the total amount deposited and the interest earned for any monthly instalment, rate and tenure.
RD formula with quarterly compounding
Indian banks compound RD interest every quarter. Each monthly instalment earns interest for the months it remains deposited, so the maturity value is the sum of every instalment grown at the quarterly rate:
M = Σ R × (1 + r/400)^k/3, for k = 1 to n months
This is mathematically identical to the closed form M = R × [(1 + i)^q − 1] / [1 − (1 + i)^−1/3], where i = r/400 and q = number of quarters.
- R – monthly instalment
- r – annual interest rate in %
- n – tenure in months
Example: ₹5,000 a month for 5 years (60 months) at 7% matures to ₹3,59,664. You deposit ₹3,00,000 and earn about ₹59,664 as interest.
How to use the RD calculator
- Enter your monthly deposit amount.
- Enter the RD interest rate offered by your bank or post office.
- Choose the tenure in months (RDs usually run from 6 months to 10 years).
- Check the maturity value, total deposits and interest in the results.
Example: ₹5,000 monthly RD at 7%
The table shows how a ₹5,000 monthly recurring deposit grows across common tenures at 7% interest with quarterly compounding.
| Tenure | Total deposited | Maturity value | Interest earned |
|---|---|---|---|
| 12 months | ₹60,000 | ₹62,311 | ₹2,311 |
| 24 months | ₹1,20,000 | ₹1,29,099 | ₹9,099 |
| 36 months | ₹1,80,000 | ₹2,00,686 | ₹20,686 |
| 60 months | ₹3,00,000 | ₹3,59,664 | ₹59,664 |
| 120 months | ₹6,00,000 | ₹8,68,509 | ₹2,68,509 |
RD vs FD vs SIP
An RD offers guaranteed returns like an FD but suits monthly saving. Because each instalment stays invested for a shorter time, the interest on an RD is lower than on an FD of the same total amount. If you can accept market risk for higher long-term growth, compare with our SIP calculator; if you have a lump sum, use the FD calculator.
Key features of a recurring deposit
- Fixed rate: the rate is locked for the full tenure when you open the RD.
- Small instalments: many banks allow RDs from ₹100 a month.
- Penalty for missed instalments: banks charge a small fee per ₹100 for delayed payments.
- Taxation: interest is taxable at your slab rate, and TDS applies if total deposit interest crosses ₹50,000 a year.
- Loan facility: you can usually borrow up to 80–90% of the RD balance.
Post Office RD
The Post Office RD runs for 5 years and also compounds quarterly, so the same formula applies. Rates are set by the government each quarter. Saving for a down payment? Pair your RD with our home loan eligibility calculator and home loan EMI calculator to see how much home you can afford.
Choosing the right RD tenure
Match the RD tenure to the date you need the money. A 12-month RD works well for annual expenses such as insurance premiums or school fees, while a 3–5 year RD suits goals like a vehicle down payment. Longer tenures do not always carry higher rates, so compare the rate card for each tenure bucket. Because the rate is fixed when you open the account, opening an RD when rates are high locks in that return for the whole period. You can also run several RDs at once for different goals, which keeps each target clear and avoids breaking one deposit for another need.
Frequently asked questions
How is RD interest calculated in India?
Banks use quarterly compounding. Each monthly instalment is compounded at r/4 per quarter for the time it stays deposited, and the maturity value is the sum of all instalments.
Can I withdraw my RD before maturity?
Yes, most banks allow premature closure with a penalty, usually 0.5–1% lower interest. Some RDs do not allow partial withdrawals.
Is RD interest taxable?
Yes. RD interest is taxed at your income slab rate and TDS at 10% applies if your total deposit interest at a bank exceeds ₹50,000 in a year (₹1 lakh for senior citizens).
What happens if I miss an RD instalment?
Banks charge a small penalty and may close the account after several missed instalments. Set up auto-debit to avoid this.