RD Calculator
Key takeaways
- ₹5,000 a month for 5 years adds up to ₹3.00 L; maturity is ₹3.60 L — ₹59,664 of interest.
- Each instalment earns from the month it lands, compounded every quarter: the first earns for all 60 months, the last for just one.
- At 7.5%, maturity would be ₹3.64 L — ₹4,785 more over the same tenure.
Yearly schedule
| Year | Deposited | Interest | Balance |
|---|---|---|---|
| 1 | ₹60,000 | ₹2,311 | ₹62,311 |
| 2 | ₹60,000 | ₹6,788 | ₹1.29 L |
| 3 | ₹60,000 | ₹11,588 | ₹2.01 L |
| 4 | ₹60,000 | ₹16,732 | ₹2.77 L |
| 5 | ₹60,000 | ₹22,246 | ₹3.60 L |
About the RD Calculator
A recurring deposit (RD) lets you save a fixed amount every month for a set tenure at a fixed interest rate, with the bank compounding your balance (usually quarterly). It suits building a corpus from regular income, the way an FD suits a one-time amount.
This calculator adds each monthly deposit and compounds the growing balance to show the maturity amount and the total interest earned over the tenure.
Frequently asked questions
How is RD maturity calculated?
Each monthly instalment earns interest for the months it stays deposited, compounded every quarter the way Indian banks and India Post calculate it, and the maturity value is the sum of all instalments plus that interest — M = P × [(1 + r/400)^q − 1] ÷ [1 − (1 + r/400)^(−1/3)] for q quarters. Because early deposits stay longer, they contribute more interest than the last few.
Is RD interest taxable?
Yes — like an FD, RD interest is taxable at your slab rate. Banks deduct TDS at 10% once total interest across your deposits crosses the annual threshold (₹50,000 for most depositors, ₹1 lakh for senior citizens, since FY 2025-26).
What happens if I miss an RD instalment?
Most banks charge a small penalty for a missed or late instalment and may close the account if several are missed. The maturity amount also drops, because that deposit and its interest are lost.
Can I withdraw an RD early?
Premature closure is usually allowed with a penalty (a lower interest rate), similar to an FD. Many banks do not allow partial withdrawals, only full closure.
RD or SIP — which should I use?
An RD pays a fixed, guaranteed rate and carries no market risk; a mutual-fund SIP is market-linked, with potentially higher but variable returns. The choice depends on whether you prioritise certainty or growth potential.
Disclaimer: This calculator is for information and education only. It is not investment advice and not a recommendation. Interest rates on deposits and savings schemes are set by the bank or the Government and can change; where the calculator takes a rate, the figures hold it for the whole term. Tax on the interest, penalties and early-withdrawal rules are included only where the calculator shows them. Every figure is computed solely by applying the formula and assumptions stated on this page to the inputs you entered.