Recurring Deposit (RD) Calculator 2026

Calculate post office and bank monthly Recurring Deposit (RD) quarterly compounded maturity returns

Monthly RD Deposit Amount

₹

Quick Presets:

₹500₹1.00 L

Annual RD Interest Rate (%)

3%15%

Time Period

Yrs

1 Yr10 Yrs

Final value: ₹3.58 L
Your money becomes: 1.2×; of what you put in over 5 years.

Invested vs Interest

Total invested: ₹3.00 L
Interest earned: ₹57,771

Interest is 16.1% of final value

Year-by-year breakdown

Show as

1
Contributed
₹60,000
Total contributed
₹60,000
Interest earned
₹2,244
Value
₹62,244
2
Contributed
₹60,000
Total contributed
₹1.20 L
Interest earned
₹6,585
Value
₹1.29 L
3
Contributed
₹60,000
Total contributed
₹1.80 L
Interest earned
₹11,230
Value
₹2.00 L
4
Contributed
₹60,000
Total contributed
₹2.40 L
Interest earned
₹16,199
Value
₹2.76 L
5
Contributed
₹60,000
Total contributed
₹3.00 L
Interest earned
₹21,514
Value
₹3.58 L

Year	Contributed	Total contributed	Interest earned	Value
1	₹60,000	₹60,000	₹2,244	₹62,244
2	₹60,000	₹1.20 L	₹6,585	₹1.29 L
3	₹60,000	₹1.80 L	₹11,230	₹2.00 L
4	₹60,000	₹2.40 L	₹16,199	₹2.76 L
5	₹60,000	₹3.00 L	₹21,514	₹3.58 L

Growth over time

The gap between the two lines is the interest earned — and it widens every year.

The formula, with your numbers

Standard Formula

A = P × (1 + i) × [(1 + i)^N − 1] ÷ i, where i = (1 + r ÷ n)^(1/3) − 1 is the rate for each instalment period and N is the number of instalments

Live Calculation (Plugging Your Values)

Monthly RD Deposit Amount (P):₹5,000

Interest rate (r):6.8%

Compounded (n):quarterly (4 times a year)

Time (t):5 years

Rate per period (i):0.005634855432

Number of periods (N):60

Total you will have invested (C):₹3,00,000

Interest earned (I):₹57,771

Substituted Equation:

₹5,000 × (1 + 0.005634855432) × [(1 + 0.005634855432)^60 − 1] ÷ 0.005634855432 = ₹3,57,771

Maturity value:₹3,57,771

Each instalment compounds only for the time left after you pay it, so the first one earns far more than the last. The calculator steps through every instalment separately rather than applying one rate to the total, which is why the interest is lower than a single lump sum of the same size would earn.

About Recurring Deposit (RD) Calculator

A recurring deposit lets you save a fixed amount every month with a bank or the post office for a set tenure, at an interest rate fixed when you open the account. Interest is compounded quarterly, and your deposits and the interest are paid back together at maturity.

This calculator works out the maturity value of monthly instalments compounded quarterly. Each instalment earns interest only for the months it is actually held, so the first instalment earns far more than the last — the method behind the maturity tables banks and India Post publish. All figures are before tax: the calculator does not deduct TDS or income tax.

How it Works

The calculator takes three inputs:

Monthly RD deposit: the fixed instalment paid at the start of every month.
Annual interest rate: your bank's RD rate, or the current post office RD rate.
Duration: the tenure in whole years. The calculator assumes 12 instalments a year with none missed.

Benefits of Recurring Deposits

Save from small monthly amounts: build a lump sum without needing one upfront.
Fixed rate for the whole tenure: the rate set when you open the RD does not change until maturity.
Safety: bank RDs are covered by DICGC up to ₹5 lakh per depositor per bank, principal and interest together, pooled with your FDs and savings in that bank. A post office RD is a Government of India small savings scheme.
Borrow without breaking it: banks lend against the RD balance, and a post office RD allows a loan of up to 50% of the balance after 12 instalments, while the RD keeps running.
Predictable for short goals: the date and amount are known in advance, which suits goals under five years.
Tax to plan for: interest is taxed at your slab rate as income from other sources, in the year it accrues. A bank deducts 10% TDS under Section 194A once your deposit interest from that bank crosses ₹50,000 in a financial year (₹1,00,000 for senior citizens), or 20% if it does not have your PAN. An RD gets no Section 80C deduction under either regime.

References

How these numbers are checked →

Recurring Deposit (RD) FAQs

What interest rate do recurring deposits pay?

Bank RD rates track their fixed deposit rates for the same tenure, typically 6.5% to 7.5%, with senior citizens getting an extra 0.5%. The Post Office RD rate is set separately by the Ministry of Finance each quarter. Interest is compounded quarterly in both cases.

What is a Recurring Deposit (RD)?

A Recurring Deposit is a disciplined monthly savings scheme offered by banks and India Post where you deposit a fixed amount every month for a set tenure and earn guaranteed quarterly compounded interest.

Is RD interest taxable in India?

Yes. Like fixed deposits, RD interest is fully taxable under Income from Other Sources at your slab rate, in the year it accrues. From 1 April 2025 the bank deducts TDS under Section 194A once your interest from that bank crosses Rs 50,000 in a financial year, or Rs 1,00,000 for senior citizens. TDS is 10% if your PAN is registered and 20% if it is not. Post office RDs have no TDS, but the interest is still taxable.

Can I withdraw money from an RD before maturity?

Premature closure is allowed by most banks with a small penalty (typically 0.5% to 1.0% lower interest rate than the contracted rate for the period held).

What happens if I miss a monthly RD instalment?

The account is not closed, but a default fee is charged. A post office RD costs Re 1 per Rs 100 of the monthly instalment for each missed month, so a Rs 5,000 RD costs Rs 50 per default, payable with the arrears; after four straight defaults the account is discontinued, though it can be revived within two months. Banks levy a similar small penalty and may close the RD after consecutive misses. Keep a standing instruction on the account.

Can I take a loan against my recurring deposit?

Yes. Banks lend up to 80% to 90% of the RD balance at roughly 1% to 2% above the RD rate, which is far cheaper than a personal loan at 12% to 18%. A post office RD allows a loan of up to 50% of the balance after 12 instalments have been paid, repayable in a lump sum or in instalments. Borrowing leaves the RD intact so it keeps earning, which usually beats breaking it early.

Should I use an RD or an SIP for a three-year goal?

For a goal that is fixed in date and amount, an RD is the safer instrument — Rs 10,000 a month for 3 years at 7% gives about Rs 4,01,600 with no uncertainty. The same amount in an equity SIP at an assumed 12% gives about Rs 4,35,100, but three years is too short a window to rely on equity and a bad year can leave you short. Use an RD or a short-duration debt fund under five years, equity only beyond that.

💻

Free Developer REST API AvailableBuilding a fintech app or blog? Integrate our free, open-CORS JSON REST APIs for high performance calculations.

View API Docs →

Related calculators