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This RD calculator gives the maturity value of a recurring deposit when you enter the monthly instalment, the yearly rate and the number of months. It follows the quarterly compounding method that banks and the post office use, where every instalment earns interest only for the months it has actually been in the account.
For a bank RD, copy the figure printed against your term on that bank's latest card. For a post office RD the term is fixed at 5 years and the rate is 6.7% at present. Further down: the maths spelled out, sums worth checking on paper, and the levers that shift the final figure.
At a glance
What you enter
Monthly instalment, yearly rate, monthsMethod
Quarterly compounding on each instalmentBank RD term
Usually 6 months to 10 years, in multiples of 3 monthsPost office RD
5 years, 6.7% a year at presentResult shows
Total paid, interest earned, maturity value
How RD calculation works, in words
A recurring deposit is a set of small fixed deposits made one month apart. The first instalment stays for the whole term, the second for one month less, and the last for only one month. Each one grows by quarterly compounding for the time it stays.
So the RD calculator does this: for every instalment it counts the months remaining to maturity, turns that into quarters, and grows the instalment by (1 plus rate divided by 400) for each quarter. Adding up all the grown instalments gives the maturity value.
Many bank sites write the same idea as one formula: maturity equals R multiplied by ((1 + i) raised to n, less 1), divided by (1 minus (1 + i) to the power minus one third). Here R is the instalment, i is the yearly rate divided by 400, and n counts quarters in the term.
Worked examples with an example rate
The 7 percent rate below is only for showing the maths. It is not any bank's rate.
| Term | You pay in | Maturity value | Interest |
|---|---|---|---|
| 12 months | 60,000 | about 62,310 | about 2,310 |
| 36 months | 1,80,000 | about 2,00,690 | about 20,690 |
| 60 months | 3,00,000 | about 3,59,660 | about 59,660 |
A small RD of 2,000 rupees a month for 24 months at 6.5 percent ends at about 51,370 rupees.
Post office RD with the rd calculator
A post office RD of 5,000 rupees a month runs for 60 months, so you put in 3 lakh. At the current rate of 6.7%, maturity comes to about 3.56 lakh, which means interest of roughly 56,000 rupees. For 1,000 rupees a month the same term gives about 71,300 rupees.
India Post publishes its own maturity table, and the post office counter may differ from any online tool by a few rupees because of rounding. For details of the account itself, see our explainer on the post office RD account or use the post office RD calculator.
Reading the result correctly
- Total paid is simply the instalment multiplied by the months.
- Interest earned is the gap between maturity value and total paid. It is taxable income.
- Maturity value assumes no instalment is late and the account is not closed early.
The figure is before tax. TDS is cut on RD earnings if your total deposit interest at that bank crosses the yearly limit. Thresholds and forms are covered on the tax on FD and RD interest page.
What changes the maturity value
- Rate: even 0.5 percent more on a 5 year RD adds a few thousand rupees on a 5,000 rupee instalment.
- Late instalments: banks and the post office charge a penalty for missed months, and several missed months can lead to closure.
- Early closure: breaking the RD usually brings a lower rate for the time it ran.
- Senior citizen rate: many banks add a small extra margin for depositors aged 60 and above.
To see where bank RD rates sit right now, read the RD interest rate guide.
Yearly RD calculator or monthly: which to use
Some people prefer to think in years. Because this RD return calculator runs online, you can also type a different interest rate and compare results in seconds. Enter the term in months anyway: 1 year is 12, 3 years is 36, 5 years is 60. A bank RD term usually has to be a multiple of three months. If you plan to put a lump sum in once rather than every month, an FD fits better, and the FD calculator handles that.
Frequently asked questions
How to calculate RD interest?
Take each monthly instalment, compound it quarterly over its own remaining months, then total them. Subtract the total paid to get the interest.
Is RD interest compounded monthly?
No. Both banks and India Post add RD interest quarter by quarter, even though you pay monthly.
Can I use this rd interest calculator for any bank?
Yes, as long as the bank compounds quarterly, which is the common practice. Enter that bank's current RD rate for your tenure.
Does the result change if one month's instalment is late?
A small penalty is charged per missed month. Repeated defaults can stop the account. The calculator assumes no missed months.
Is the maturity amount tax free?
No. Your instalments come back untaxed, but the extra earned on them joins your income for the year.
Official sources
- India Postwww.indiapost.gov.in
- National Savings Institutewww.nsiindia.gov.in
- Reserve Bank of Indiawww.rbi.org.in
Rules, amounts and portals can change. Check the official source before you apply or deposit.