RD Calculator

A recurring deposit (RD) lets you save a fixed amount every month and earn fixed-deposit style interest on it. Banks and India Post compound RD interest every quarter, so each instalment earns interest for the months it stays in the account.

Use your bank’s RD rate. The 5-year Post Office RD rate for October–December 2026 is 6.7%.
Between 6 and 120 months. Post Office RD runs for 60 months.
Results update as you type.

Maturity amount

₹3,56,829

after 60 months, about 3.57 lakh

Total deposited
₹3,00,000₹5,000 × 60 months
Interest earned
₹56,82956.83 thousand

What the maturity amount is made of

  • Deposits₹3,00,00084.1%
  • Interest₹56,82915.9%
Balance at the end of each year
Balance at the end of each year
MonthDeposited so farBalance
12₹60,000₹62,210
24₹1,20,000₹1,28,694
36₹1,80,000₹1,99,746
48₹2,40,000₹2,75,679
60₹3,00,000₹3,56,829

About this calculator

Enter your monthly deposit, the rate and the number of months. The calculator adds up what every instalment grows to and shows the maturity amount and the interest earned.

How to use it

  1. Enter the amount you will deposit every month.
  2. Enter the RD rate offered by your bank or post office.
  3. Enter the tenure in months.
  4. Read the maturity amount and the interest earned.

The formula

Maturity = Σ R × (1 + r ÷ 400)k ÷ 3, for k = 1 to N
R
the monthly deposit
r
the yearly interest rate in percent
k
the months a deposit stays until maturity (the first stays N months, the last 1 month)
N
the number of monthly deposits

Dividing the rate by 400 gives the quarterly rate, and k ÷ 3 turns months into quarters.

Worked example

Post Office RD: ₹5,000 a month for 5 years at 6.7%

  1. R = ₹5,000, r = 6.7%, N = 60 months.
  2. The first deposit grows for 60 months: 5,000 × (1 + 6.7 ÷ 400)20 = ₹6,970. The last grows for 1 month: ₹5,028.
  3. Adding all 60 deposits gives ₹3,56,829. You put in ₹3,00,000, so the interest is ₹56,829.
  4. For ₹100 a month the same method gives ₹7,136.58, which matches the ₹7,136 in India Post’s own table.

What the result means

The maturity amount is what you receive at the end, before any tax deducted at source. RD interest is taxable like FD interest, and banks deduct TDS when interest crosses the limit in force.

An RD suits people who want to save from their monthly income at a fixed rate. For long-term goals where you can accept market risk, compare with the SIP calculator.

Assumptions

  • Every instalment is paid on time at the start of each month.
  • Interest is compounded quarterly at a fixed rate for the whole tenure.
  • The account runs to full maturity.

Limitations

  • Some banks round interest at each quarter or use slightly different day counts, so their figure can differ by a few rupees.
  • Late instalments attract a penalty, and early closure usually earns a lower rate. Neither is modelled.
  • TDS and income tax are not deducted.

Frequently asked questions

What is the Post Office RD rate now?

6.7% a year for the 5-year Post Office RD for October to December 2026. Bank RD rates vary by bank and tenure.

Is RD better than FD?

At the same rate, an FD earns more because the whole amount is invested from day one. An RD is for when you save a little each month rather than having a lump sum.

Is RD interest taxable?

Yes. It is added to your income and taxed at your slab rate, and banks deduct TDS above the threshold in force.

What happens if I miss an RD instalment?

Banks and India Post charge a small penalty and may close the account after several missed instalments. Check your bank’s rules.

For information only. This calculator gives estimates based on the figures you enter and the assumptions listed above. It is not financial advice. Actual amounts depend on the lender’s or institution’s terms, fees, rounding and rate changes. Please confirm with them before you decide.

Last reviewed on 1 October 2026. Found a mistake? Tell us.