RD Calculator

Enter the monthly deposit, the interest rate and the tenure in months. The calculator totals what you deposit and the interest each instalment earns until maturity.

How to use the RD calculator

1. Monthly deposit: the fixed instalment you will pay into the recurring deposit every month. Banks usually accept anything from ₹100 or ₹500 upward, in multiples set by the bank.
2. Interest rate: the yearly rate on the bank’s RD rate card for your tenure. RD rates usually match the bank’s FD rates for the same period. Senior citizens get a little more.
3. Tenure: the number of months, from 6 to 120. Banks offer RDs in multiples of three months, and the post office RD runs for five years.

The result shows the maturity value, the total you deposited and the interest earned. The calculator uses quarterly compounding, which is what most Indian banks and the post office use for RDs.

How RD interest is calculated

Each instalment is treated like a small fixed deposit that runs from the month it is paid until maturity. The first instalment earns interest for the full tenure, the second for one month less, and the last for just one month. Interest is compounded every quarter. The maturity value is the sum of what every instalment has grown to.

With the defaults, ₹5,000 a month at 6.5% for 60 months:

• Total deposited: ₹3,00,000
• Interest earned: about ₹54,954
• Maturity value: about ₹3,54,954

That interest is much less than 6.5% a year on ₹3 lakh for five years, because on average your money is in the RD for only about half the tenure. That is why a quick “rate times total” guess overstates RD returns.

The formula banks use

For a single instalment, the value at maturity is:

A = R × (1 + r ÷ 4)^(4 × t)

R is the instalment, r the yearly rate as a decimal and t the time in years that instalment stays in the RD. The first of 60 instalments stays five years, so ₹5,000 grows to about ₹6,900 at 6.5%. The last stays one month, so it grows by only about ₹27. The calculator works this out for every instalment and adds them up. Because t is a fraction of a quarter for most instalments, banks may handle the part-quarter slightly differently, which can make their maturity figure differ from this one by a few rupees. If the difference is larger, check that you used the right rate and tenure, and ask the bank for its maturity statement, which it shows when you open the RD.

How the result changes

Monthly deposit	Rate	Tenure	Deposited	Interest	Maturity
₹5,000	6.5%	12 months	₹60,000	₹2,143	₹62,143
₹5,000	6.5%	36 months	₹1,80,000	₹19,122	₹1,99,122
₹5,000	6.5%	60 months	₹3,00,000	₹54,954	₹3,54,954
₹5,000	6.5%	120 months	₹6,00,000	₹2,44,940	₹8,44,940
₹2,000	6.5%	60 months	₹1,20,000	₹21,982	₹1,41,982
₹10,000	7.0%	24 months	₹2,40,000	₹18,198	₹2,58,198

Interest grows faster than deposits as the tenure lengthens. Doubling the tenure from 5 to 10 years doubles the deposits but more than quadruples the interest.

The rate also matters. ₹5,000 a month for 60 months earns about ₹45,754 at 5.5% and about ₹64,449 at 7.5%. Shopping around between banks, small finance banks and the post office can add several thousand rupees over five years.

Bank RD or post office RD?

The post office recurring deposit is a government small savings scheme with a five-year term and quarterly compounding. Its rate is set by the government every quarter and is often competitive with bank RDs. It is backed by the government, so there is no limit on the amount protected, but it runs only for five years (with an option to extend), and missed instalments carry a small default fee.

Bank RDs offer more flexibility on tenure, from six months to ten years, and can be opened and managed in net banking or the app. Deposits are covered by DICGC insurance up to ₹5 lakh per depositor per bank, together with any FDs and savings at the same bank.

If the post office rate is 6.7% for five years, ₹5,000 a month would grow to about ₹3,56,829.

Missed instalments

An RD needs the instalment every month. If you miss one, most banks charge a penalty, often ₹1 to ₹2 per ₹100 of the instalment per month of delay, and after several missed instalments the bank may close the RD and pay interest at a lower rate. Set up auto-debit from your savings account to avoid this. If your income is uneven, choose an instalment you can manage every month and put any surplus into a separate FD.

Premature closure

You can usually close an RD early, but the bank will pay interest at the rate for the period the money actually stayed, minus a penalty of about 0.5% to 1%. Some banks do not allow partial withdrawal from an RD at all. If you might need the money early, a shorter RD or a flexible savings plan is safer than a long one.

Tax on RD interest

RD interest is taxed at your slab rate in the year it accrues. Since 2015 banks deduct TDS on RD interest just as they do on FDs, once your total interest from that bank in a year crosses the threshold of ₹50,000, or ₹1 lakh for senior citizens, from 2025-26. Submit Form 15G or 15H if your income is below the taxable limit. The calculator shows interest before tax. At a 30% slab with cess, ₹54,954 of interest leaves about ₹37,800.

What an RD is good for

An RD suits short and medium-term goals where you want a guaranteed amount on a known date:

• An emergency fund built up month by month.
• A down payment for a car or a two-wheeler.
• School or college fees due in a year or two.
• A wedding, a festival or a planned trip.
• Insurance premiums or property tax due once a year.

To find the instalment for a goal, start with the goal divided by the number of months, then reduce it slightly, since interest covers part of the target. For ₹2 lakh in 36 months at 6.5%, ₹5,000 a month gets you about ₹1,99,122, almost exactly there.

RD, FD, PPF or SIP?

• If you already have a lump sum, an FD earns more than an RD of the same total because all the money works from day one. The FD calculator shows the figure.
• For long-term savings with tax benefits, the PPF calculator shows how a 15-year PPF builds up tax-free.
• For goals more than five to seven years away, a monthly SIP in equity mutual funds has historically earned more than an RD, but without a guarantee. The SIP calculator projects it at different return rates.

A common approach is to use an RD for goals within three years and SIPs for longer ones. Between three and five years, many people split the monthly amount between the two.

Whatever you choose, add a nominee when you open the RD and keep the maturity instruction up to date, so the money goes to the right account when the RD ends.

The calculator runs in your browser. Nothing you enter is saved or sent.

Frequently asked questions

How much will I get if I deposit ₹5,000 a month in an RD for 5 years?

At 6.5% compounded quarterly, about ₹3,54,954: ₹3,00,000 of deposits and about ₹54,954 of interest. At 7% it is a little over ₹3.59 lakh. Enter your bank’s rate to see the exact figure.

Why is RD interest lower than FD interest on the same total?

Because an RD builds up gradually. Only the first instalment stays for the whole tenure; the last stays for one month. In an FD the whole amount earns interest from the first day. At the same rate, an RD earns roughly half the interest of an FD for the same total and tenure.

Is RD interest compounded monthly or quarterly?

Most Indian banks and the post office compound RD interest quarterly. The calculator uses quarterly compounding. Some banks state their RD rates with monthly or other compounding; the difference over five years is small.

Is TDS deducted on RD interest?

Yes. TDS applies to RD interest just as it does to FD interest, once your total interest from the bank in a financial year crosses ₹50,000 (₹1 lakh for senior citizens). Submit Form 15G or 15H if your income is below the taxable limit, and claim credit for TDS in your return.

Can I change the RD instalment later?

Usually not. The instalment is fixed when you open the RD. If you want to save more, open a second RD. Some banks offer flexible RDs where you can deposit varying amounts within limits, with slightly different rules.

Is a post office RD better than a bank RD?

It is government-backed with no insurance limit, and its rate is often competitive. Bank RDs offer more tenure choices and easier online management, with DICGC cover up to ₹5 lakh per bank. Compare the current rates for your tenure before choosing.