RD calculator using the bank method
A recurring deposit (RD) lets you save a fixed amount every month with a bank or the post office and earn a fixed interest rate. This RD calculator shows the maturity value, the total amount deposited and the interest earned for any monthly instalment, rate and tenure.
It follows the method Indian banks use: interest is compounded quarterly, and each monthly instalment earns compound interest only for the months it actually stays in the account. A quarter-by-quarter table shows how the balance builds, and you can download it as CSV.
Rupee amounts use Indian lakh/crore formatting by default; choose another currency if you are planning a monthly savings deposit elsewhere. Banks may round interest each quarter, so the figures are close estimates rather than financial advice.
How to use the RD Calculator
- Enter your Monthly deposit or drag the slider.
- Type the bank’s Interest rate (p.a.) for your tenure (and age, if senior-citizen rates apply).
- Set the Tenure in months — for example 12, 24, 36 or 60.
- Read the maturity value, the total deposited and the interest earned.
- Scroll the quarter-by-quarter table or press Download CSV.
RD Calculator features
Bank-style quarterly compounding
Each instalment compounds at (1 + r/4) per quarter for exactly the time it is deposited.
Any tenure in months
From a few months to ten years or more, including tenures that are not whole quarters.
Quarterly balance table
Deposits, interest and balance at the end of every quarter, downloadable as CSV.
Clear split
A donut chart and legend show how much of the maturity value is your money and how much is interest.
How RD interest is calculated (with formula)
Banks treat an RD as a series of small deposits. The first instalment stays for the full tenure, the second for one month less, and so on, and each compounds quarterly. With R as the monthly instalment, r the annual rate and i = r ÷ 400 the quarterly rate, the maturity value is the sum M = Σ R × (1 + i)k/3 for k = 1 to the number of months — each instalment grows for k months, i.e. k/3 quarters.
When the tenure is a whole number of quarters (n), this simplifies to the formula often printed by banks: M = R × [(1 + i)n − 1] ÷ [1 − (1 + i)−1/3].
Example: ₹5,000 a month for 12 months at 7%. Here i = 0.0175 and n = 4, so M = 5,000 × [(1.0175)4 − 1] ÷ [1 − (1.0175)−1/3] ≈ ₹62,311. You deposit ₹60,000 and earn ₹2,311 of interest. Keep it going for 60 months and the maturity value is about ₹3,59,664 on ₹3,00,000 of deposits.
RD vs. FD vs. SIP
- RD builds a saving habit with a guaranteed rate, but each instalment earns interest for less time, so the effective return is lower than an FD at the same rate.
- FD invests a lump sum for the full tenure — compare with the FD calculator if you already have the money.
- SIP also invests monthly but in mutual funds, with market-linked (not guaranteed) returns — see the SIP calculator.
- For a tax-free long-term government scheme, look at the PPF calculator.
Things to know before opening an RD
- Missed instalments usually attract a small penalty, and several missed months can lead the bank to close the account.
- Premature closure is generally allowed with a lower rate or penalty; partial withdrawals usually are not.
- Tax: RD interest is taxable at your slab rate, and banks deduct TDS on it in the same way as on FDs once the yearly threshold is crossed.
- Post Office RD has a fixed 5-year tenure with quarterly compounding at a rate set by the government each quarter.
- Senior citizens often get a higher rate, and the rate is fixed for the whole tenure once you open the account.
RD Calculator FAQ
How is RD maturity value calculated?
Each monthly instalment compounds quarterly for the months it remains deposited, and the results are added up. This RD calculator does that sum exactly, which equals M = R × [(1 + i)^n − 1] ÷ [1 − (1 + i)^(−1/3)] for whole quarters.
What is the maturity of ₹5,000 per month RD for 1 year at 7%?
About ₹62,311 — ₹60,000 deposited plus ₹2,311 interest.
Why is RD interest lower than FD interest at the same rate?
In an FD the whole amount earns interest for the full tenure. In an RD, later instalments are invested for only a few months, so the average balance is roughly half of the total deposited.
Is RD interest compounded monthly or quarterly?
Most Indian banks and the post office compound RD interest quarterly, even though deposits are monthly. That is the convention this calculator uses.
Is TDS deducted on recurring deposits?
Yes. RD interest counts towards the same TDS threshold as fixed deposits with that bank. You can submit Form 15G/15H if eligible, and interest remains taxable at your slab rate.
Can I change the instalment amount later?
Usually not — the monthly amount is fixed when you open a standard RD. Some banks offer flexible RDs; check their terms.