RD Calculator (Recurring Deposit)
By Santaji GadepatilinUpdated October 27, 2026
A recurring deposit lets you save a fixed amount every month and earn fixed-deposit interest on it. This free RD calculator solves for whichever value you leave blank and shows the formula and steps.
Maturity amount vs Tenure — other inputs held at your current values.
How to use the RD calculator
Enter your monthly deposit, the interest rate and the tenure in months. The calculator shows the maturity amount, the total you deposited and the interest earned.
To save for a goal, press × on Monthly deposit and type the maturity amount you need.
The RD formula
Banks in India compound recurring deposits quarterly. The standard formula is:
M = R × [(1 + i)n − 1] ÷ [1 − (1 + i)−1/3]
- R = monthly deposit
- i = quarterly interest rate = annual rate ÷ 4
- n = number of quarters = months ÷ 3
Each monthly deposit earns compound interest from the month it is paid until maturity, so the first instalment earns the most.
Worked example
₹5,000 a month for 5 years (60 months) at 7%:
- Quarterly rate = 7% ÷ 4 = 1.75%
- Number of quarters = 60 ÷ 3 = 20
- Total deposited = 5,000 × 60 = ₹3,00,000
- Maturity = ₹3,59,664
- Interest earned = ₹59,664
₹5,000 a month at 7%
| Tenure | Deposited | Maturity | Interest |
|---|---|---|---|
| 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
| RD | FD | |
|---|---|---|
| Deposit | Fixed amount every month | One lump sum |
| Best for | Saving from monthly income | Money you already have |
| Interest | Lower total (later deposits earn less) | Higher on the same total |
| Rate | Usually same as FD for the tenure | — |
Bank RD vs post office RD
- Bank RD: tenure from 6 months to 10 years, rates vary by bank, extra for senior citizens.
- Post office RD: fixed 5-year tenure, government-backed, currently 6.7% compounded quarterly.
Keep in mind
- Interest is taxable at your slab rate.
- Pay on time. Late instalments attract a penalty.
- The calculator assumes the rate stays the same for the whole tenure, which it does for a bank RD once opened.
Frequently asked questions
How is RD interest calculated?
Indian banks compound RD interest quarterly. Maturity = R × [(1 + i)ⁿ − 1] ÷ [1 − (1 + i)^(−1/3)], where R is the monthly deposit, i the quarterly rate (annual ÷ 4) and n the number of quarters.
What is the maturity of ₹5,000 a month RD for 5 years?
At 7% it is about ₹3,59,664. You deposit ₹3,00,000 and earn about ₹59,664 in interest.
What is the post office RD interest rate?
6.7% a year for the 5-year post office RD in the October–December 2026 quarter. Enter 6.7% and 60 months.
Is RD interest taxable?
Yes, at your slab rate, and TDS applies above the yearly threshold, the same as for FDs.
What happens if I miss an RD instalment?
Banks charge a small penalty per missed month, and after several missed instalments the account may be closed early.
RD or SIP — which is better?
RD gives a fixed, guaranteed return. A SIP in an equity fund can earn more over long periods but the return is not guaranteed.