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Recurring Deposit (RD) Calculator

Enter your monthly deposit, interest rate and tenure to see the maturity amount and interest earned on a recurring deposit. Interest is compounded quarterly by default, the way most Indian banks and the post office calculate it, with a full month-by-month breakdown.

Last updated:

₹
% p.a.

Your bank or post office RD rate. Senior citizens often get 0.25% to 0.5% more.

months

Banks usually offer 6 to 120 months; post office RD is 60 months.

Enter your values to see the result.
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How to use the Recurring Deposit (RD) Calculator

  1. Enter your monthly instalment in rupees.
  2. Enter the annual interest rate offered by your bank or post office.
  3. Enter the tenure in months (for example 12, 24 or 60).
  4. Keep quarterly compounding unless your bank says otherwise.
  5. Read the maturity value and scroll through the monthly table to see how interest builds up.

Recurring deposit maturity formula

In a recurring deposit (RD) you pay the same amount every month, and each instalment earns compound interest for the time it stays in the account. Most Indian banks and the post office compound RD interest quarterly. The maturity value is the sum of every instalment's value:

M = Σ P × (1 + r/n)n × tk

where P is the monthly deposit, r the annual rate, n the compounding periods per year (4 for quarterly) and tk the years instalment k stays invested (the first for the full tenure, the last for one month). For quarterly compounding this sum equals the formula many banks publish:

M = P × ((1 + i)q − 1) ÷ (1 − (1 + i)−1/3), with i = r ÷ 400 and q = number of quarters.

Example: ₹5,000 a month for 24 months at 7% compounded quarterly. You deposit ₹1,20,000 and receive about ₹1,29,099, so the interest is about ₹9,099.

Maturity value of ₹1,000 per month

Quarterly compounding. Multiply by your deposit in thousands (₹5,000 a month is 5 ×).

Tenure6%6.5%7%7.5%8%
12 months₹12,395₹12,429₹12,462₹12,496₹12,529
24 months₹25,551₹25,685₹25,820₹25,955₹26,091
36 months₹39,514₹39,824₹40,137₹40,453₹40,772
60 months₹70,064₹70,991₹71,933₹72,890₹73,862
120 months₹1,64,429₹1,68,988₹1,73,702₹1,78,576₹1,83,617

Things to know about RDs

  • Tax: RD interest is fully taxable as "income from other sources" at your slab rate. Banks deduct TDS when the interest from all your deposits at that bank exceeds the threshold in a financial year.
  • Missed instalments usually attract a small penalty, and several missed payments can lead the bank to close the RD.
  • Premature withdrawal is often allowed with a lower rate (commonly 0.5% to 1% below the contracted rate).
  • Rates differ by bank, tenure and for senior citizens, so enter the exact rate from your bank.

Frequently asked questions

How is RD interest calculated?

Each monthly instalment earns compound interest for the time it stays deposited. With quarterly compounding, an instalment kept for t years grows to P × (1 + r/4)^(4t). The maturity value is the sum for all instalments, which equals M = P × ((1 + i)^q − 1) ÷ (1 − (1 + i)^(−1/3)) with i = r/400 and q quarters.

What is the maturity value of ₹5,000 per month for 2 years at 7%?

With quarterly compounding you deposit ₹1,20,000 and get about ₹1,29,099 at maturity, which is roughly ₹9,099 of interest.

Is RD interest compounded monthly or quarterly?

Most Indian banks and India Post compound recurring deposit interest quarterly. Some banks and other countries use monthly compounding; you can switch the compounding option to match your account.

Is RD interest taxable?

Yes. RD interest is added to your income and taxed at your slab rate. Banks deduct TDS when your total deposit interest at that bank crosses the yearly threshold; you can submit Form 15G or 15H if you are eligible and your income is below the taxable limit.

RD or SIP: which is better?

An RD gives a fixed, guaranteed return and protects your capital, while a mutual fund SIP can earn more over long periods but its returns vary and can be negative. Many people use RDs for short-term goals and SIPs for long-term goals.

What happens if I miss an RD instalment?

Banks usually charge a small penalty per missed instalment and may close the account after several consecutive misses. The maturity value will be lower than this calculator shows.

Are all the tools on FreeToolCabin tested for quality and accuracy?

Yes! Every tool on our site undergoes automated Q/A testing in real browser environments to ensure high precision, correct output, and zero errors. If you happen to spot a bug or have a suggestion, please contact us at [email protected] and our team will review it right away.

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