RD Calculator
This RD calculator works out the maturity value of a recurring deposit — a fixed monthly deposit that earns quarterly-compounded interest, the standard structure at Indian banks and post offices. Enter your monthly deposit amount, the interest rate, and the tenure to see what you will receive at maturity and how much of that is interest. RDs suit savers who want FD-like safety with the discipline of a monthly commitment rather than a single lump sum.
The fixed amount you deposit every month. Most banks allow RDs starting from ₹100–₹500 per month.
The RD rate your bank quotes — usually close to the bank's FD rate for a similar tenure.
RDs commonly run from 6 months to 10 years. Choose a tenure you can sustain — missed instalments attract a small penalty.
Maturity value
₹3,51,157
The lump sum you'll receive when the RD term ends — e.g. ₹5,000/month at 6.5% for 5 years matures to about ₹3,51,157.
Your actual out-of-pocket money — every monthly deposit added together, with no interest included.
What quarterly compounding added on top of your deposits — later instalments earn less interest since they compound for less time.
How to use this rd calculator
- 1Monthly deposit: pick an amount you can commit to for the full tenure — most banks charge a small penalty (often ₹1–₹10 per ₹100 per month delayed) for missed instalments.
- 2Interest rate: RD rates are usually close to the bank's FD rate for a matching tenure. Post office RDs currently offer a government-backed, uniform rate across India regardless of bank.
- 3Tenure: 5 years is the most common RD term, but 1–10 year options exist. A tax-saving 5-year post-office RD also qualifies for TDS exemption up to the standard interest threshold.
- 4Compare the maturity value against what the same monthly amount would earn in a SIP — RDs are guaranteed but SIPs have historically returned more over 5+ years, with market risk.
Understanding your results
Maturity value is the lump sum you receive when the RD term ends. Total deposited is simply your monthly amount times the number of months — your actual out-of-pocket contribution. Interest earned is what quarterly compounding added: because each instalment is deposited at a different time, it compounds for a different length of time, so the last few months' deposits earn far less interest than the earliest ones by maturity. As with FDs, RD interest is fully taxable at your slab rate, and TDS applies if your total interest income from all deposits exceeds the annual threshold.
The formula
Maturity = Σ [Depositₘ × (1 + r/4)^(quarters remaining)]Each monthly deposit compounds separately for however many complete quarters remain until maturity, at the quarterly rate r/4 (annual rate ÷ 400). The very first deposit compounds for nearly the whole tenure; the final deposit, made in the last month, barely compounds at all. Summing every individual deposit's compounded value gives the total maturity amount — this is why an RD's total interest is noticeably less than a lump-sum FD of the same total value, even at an identical rate, since most of an RD's money is invested for less than the full tenure.
A worked example
₹5,000 deposited every month for 5 years (60 instalments) at 6.5%, compounded quarterly: the maturity value is approximately ₹3,51,157. Total deposited over the 5 years is ₹3,00,000, so interest earned is about ₹51,157 — roughly 17% of the amount deposited, reflecting the fact that money deposited later in the tenure had far less time to compound. Shorten the same ₹5,000/month RD to 3 years and it matures at about ₹1,96,992 on ₹1,80,000 deposited — only about ₹16,992 interest, since most instalments barely compounded before the shorter term ended.
Notes for the UK, US and India
Post office RDs in India offer a nationwide, government-guaranteed rate reviewed quarterly, often competitive with or better than bank RDs, with the same 5-year tax-saving structure as an equivalent FD. Bank RDs offer more flexible tenures (as short as 6 months) and easier online setup. Outside India, the closest analogue is a regular savings plan or a 'save as you go' account in the UK/US, though these rarely use the quarterly-compounding, fixed-tenure structure that makes Indian RDs distinctive — most Western equivalents compound simple/monthly interest on a variable-rate, no-penalty basis.
Frequently asked questions
How is RD maturity calculated?+
Each monthly deposit compounds quarterly for however many quarters remain until maturity, and all deposits' compounded values are summed. ₹5,000/month at 6.5% for 5 years matures at about ₹3,51,157 on ₹3,00,000 deposited.
What happens if I miss an RD instalment?+
Most banks charge a small penalty per ₹100 per month delayed (commonly ₹1–₹10) rather than closing the account, as long as you catch up. Repeated defaults can lead to premature closure at a reduced rate — check your bank's specific policy.
Is RD interest taxable?+
Yes, at your income slab rate, same as FD interest — there is no special exemption. TDS at 10% applies once total interest from a bank exceeds the standard annual threshold, unless you submit Form 15G/15H.
RD or SIP — which should I choose?+
RD gives a guaranteed, fixed return with zero market risk — ideal for short-term, non-negotiable goals (a wedding, a down payment in 2–3 years). SIP into equity or hybrid funds has historically earned more over 5+ years, but with variable, sometimes negative, returns along the way.
Can I increase my RD instalment later?+
Typically no — a standard RD locks in the same monthly deposit amount for the full tenure. If you want to increase savings as your income grows, open a fresh RD or switch to a step-up SIP instead.