RD Calculator

What your result means

A recurring deposit (RD) lets you save a fixed amount every month for a fixed period. The calculator shows what you get back at the end.

The interest looks smaller than on an FD of the same rate. That is because each instalment is invested for a different time. Your first deposit earns interest for the full tenure, but your last deposit earns it for only one month.

How RD interest is calculated

Banks and the Post Office compound RD interest every quarter. The calculator treats each instalment as a small deposit that grows for the months it has left, then adds them all up:

Maturity = Σ (m = 1 to N) P × (1 + r ÷ 400)^{(N − m + 1) ÷ 3}

• P: your monthly deposit.
• r: the interest rate a year, as a percentage. Dividing by 400 gives the rate for one quarter.
• N: the tenure in months.
• m: the instalment number. Instalment m stays invested for N − m + 1 months, which is (N − m + 1) ÷ 3 quarters.
• Σ: means “add up” the value of every instalment.

How to use the RD calculator

1. Enter your monthly deposit. The default is ₹5,000.
2. Enter the interest rate as a percentage a year. The default is 6.7%, the Post Office 5-year RD rate for October to December 2026.
3. Enter the tenure in months, from 6 to 120. The default is 60 months (5 years).
4. Read the maturity value, total deposited and interest earned. Results update as you type.

Worked example

Suresh opens a 5-year Post Office RD of ₹5,000 a month at 6.7% a year.

1. Rate per quarter: 6.7 ÷ 400 = 0.01675.
2. Months: 60, so he deposits 60 instalments.
3. First instalment grows for 60 months (20 quarters): 5,000 × (1.01675)²⁰ = ₹6,970.
4. Last instalment grows for 1 month (1/3 of a quarter): 5,000 × (1.01675)^1/3 = ₹5,028.
5. Adding all 60 instalments gives a maturity value of ₹3,56,829.
6. Total deposited: 5,000 × 60 = ₹3,00,000.
7. Interest earned: ₹3,56,829 − ₹3,00,000 = ₹56,829.

If Suresh saves ₹10,000 a month instead, everything doubles: maturity of ₹7,13,658 and interest of ₹1,13,658. Here is a quick lookup for a 5-year Post Office RD at 6.7%:

How tenure changes your RD

Here is the same ₹5,000 a month at 6.7% over different tenures:

Doubling the tenure from 5 to 10 years doubles what you deposit but more than quadruples the interest, because early instalments compound for longer.

You can also work backwards from a goal. To collect ₹5 lakh in 5 years at 6.7%, you need about ₹7,006 a month. Try different amounts in the calculator until the maturity value matches your goal, such as a school fee, a bike or a wedding expense.

Bank RD vs Post Office RD

The Post Office rate stays fixed for your whole 5-year account at the rate on the day you open it, even if later quarterly rates change. Bank RD rates are also fixed when you open the account. Bank rates differ widely, so compare a few before choosing.

Timing matters a little right now. RBI raised the repo rate to 5.50% on 7 October 2026 and said further moves can only be a hike or a pause. Bank deposit rates tend to move with the repo rate, but each bank decides when and by how much, so compare rate cards before you open a bank RD. The Post Office rate for October to December 2026 is already fixed at 6.7%, unchanged from the previous quarter.

Post Office RD features most people miss

• Advance deposit rebate: pay 6 or 12 instalments in advance and you get a small rebate.
• Withdrawal after one year: you can withdraw up to 50% of the balance once the account is one year old.
• Extension: at maturity, you can continue the account for another 5 years, with or without deposits.

Missed instalments and early closure

If you miss a monthly deposit, banks and the Post Office usually charge a small penalty for each missed month. If you miss several in a row, the account may be stopped until you pay the dues. Paying on the same date every month, through auto-debit, avoids this. Closing an RD early is allowed at most banks, but you earn a lower rate. A Post Office RD can be closed early only after 3 years.

Tax on RD interest

RD interest is taxed like FD interest. It is added to your income and taxed at your slab rate. Banks deduct TDS at 10% when your total interest from that bank, across FDs and RDs, crosses ₹50,000 in a year, or ₹1,00,000 for senior citizens. Unlike some 5-year deposits, an RD gives no tax deduction on the amount you deposit.

Limitations

• Before tax: income tax and TDS are not deducted.
• All instalments on time: missed payments and penalties are not included.
• Rounding and day counts: some banks use slightly different methods, so their figure may differ by a few rupees.
• One rate: the rate is assumed fixed for the whole tenure, which is normal for RDs.
• No inflation: the maturity value is in future rupees. If prices rise faster than your RD rate, your money buys less at the end.

Use the result to plan and compare. Your bank or post office confirms the exact maturity amount.

Key facts

• The Post Office 5-year RD rate has been 6.7% a year since 1 October 2023. (National Savings Institute (opens in new tab))
• Small savings rates for October to December 2026 were kept unchanged from the previous quarter. (Department of Economic Affairs, 30 September 2026 (opens in new tab))
• The minimum Post Office RD deposit is ₹100 a month, in multiples of ₹10, with no upper limit. Up to 50% of the balance can be withdrawn after one year. (National Savings Institute (opens in new tab))
• A Post Office RD can be closed early after 3 years, with simple interest at the Post Office savings account rate. (National Savings Institute (opens in new tab))
• RBI raised the policy repo rate by 25 basis points to 5.50% on 7 October 2026. (RBI (opens in new tab))
• Bank deposits, including RDs, are insured by DICGC up to ₹5 lakh per depositor per bank. (DICGC (opens in new tab))
• Interest on recurring deposits is taxable, and banks deduct TDS on it above the yearly limit. (Income Tax Department (opens in new tab))