Calculator
RD Calculator
The fixed amount you deposit every month.
RD rates are similar to FD rates at the same bank.
RDs usually run from 6 months to 10 years.
Deposits vs interest earned over time
- Deposited
- Interest
View yearly breakdown
| Year | Deposited | Interest | Total |
|---|---|---|---|
| Y1 | ₹60,000 | ₹2,143 | ₹62,143 |
| Y2 | ₹1,20,000 | ₹8,425 | ₹1,28,425 |
| Y3 | ₹1,80,000 | ₹19,122 | ₹1,99,122 |
| Y4 | ₹2,40,000 | ₹34,527 | ₹2,74,527 |
| Y5 | ₹3,00,000 | ₹54,954 | ₹3,54,954 |
Interest here compounds quarterly, the way banks calculate RD interest. Banks may apply simple interest for a part quarter and round each instalment’s tenure, so your bank’s figure can differ by a few rupees. RD interest is fully taxable at your slab, and TDS applies once interest crosses ₹50,000 a year (₹1,00,000 for senior citizens). This figure is pre-tax.
A recurring deposit (RD) lets you invest a fixed amount every month with a bank or post office and earn a fixed, FD-like rate on each instalment. It suits salaried savers who want the safety of a deposit but cannot park a lump sum upfront. This calculator estimates what your RD will be worth at maturity and how much of that is interest, based on your monthly amount, rate, and tenure. Because each instalment compounds for a different length of time, an RD earns less than a one-time FD of the same total — but it builds a strong savings habit.
What your result means
- An RD rewards monthly discipline at a fixed rate, but the interest is taxable at your slab — so the post-tax return trails the headline number.
- For goals beyond ~5 years, a flat-return RD usually loses to an equity SIP; reserve RDs for safe, short-term targets.
- Maturity here uses standard quarterly compounding; your bank may round differently, so treat it as a close estimate.
How to use this calculator
- Enter the fixed amount you can deposit every month.
- Enter the RD interest rate your bank or post office offers.
- Set the tenure in months — RDs typically run 6 months to 10 years.
- Read the maturity value, then compare it against total invested to see the interest.
- Adjust the monthly amount or tenure to hit a specific savings target.
The formula
Maturity = M × (1 + q)^(k ÷ 3), added up for k = 1 to n, where M = monthly deposit, q = quarterly rate (annual ÷ 4 ÷ 100), n = number of months and k = the months each instalment stays deposited. The same sum in closed form: M × [(1 + q)^(n ÷ 3) − 1] ÷ [1 − (1 + q)^(−1 ÷ 3)]. Total invested = M × n. Interest = Maturity − Total invested.
Worked example
Depositing ₹5,000 a month at 6.5% per year for 60 months (5 years): q = 0.01625 (6.5% ÷ 4 ÷ 100), n = 60. Maturity ≈ ₹3,54,954 against a total investment of ₹3,00,000, so about ₹54,954 is interest. A one-time FD of ₹3,00,000 at the same rate for 5 years would earn more, because the full amount compounds from day one — the RD trades some return for the convenience of monthly saving.
When to use it
- Building a savings habit when you cannot invest a lump sum upfront.
- Saving for a near-term goal like a vacation, gadget, or festival expense.
- Parking a portion of your salary safely each month without market risk.
- Comparing an RD against a monthly SIP to weigh safety versus growth potential.
Frequently Asked Questions
References & sources
- RBI — deposit interest rate norms
- Income Tax Department — TDS on interest income
- Income Tax Department — Income Tax Forms FAQs: Form No. 121 replaces Forms 15G and 15H from tax year 2026-27
- Bank of Baroda — How to Calculate Recurring Deposit Interest Rate? (banks compound RD interest quarterly)
How this calculator was checked: Checked on 15 September 2026: the formula was changed from monthly to quarterly compounding, which Bank of Baroda describes as the way banks compound RD interest, and its closed form was confirmed against the month-by-month sum. Re-run on 5 cases, including ₹5,000 a month at 6.5% for 60 months (₹3,54,954) and a 0% rate (₹90,000 back on ₹90,000 deposited); the growth chart ends at the same maturity. Not reviewed by a registered banking adviser.