RD Calculator
Work out the maturity value of a recurring deposit using the standard Indian bank formula with quarterly compounding.
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= 5 years
Maturity amount
₹3,59,664
₹3.6 lakh after 60 months at 7%
RD returns
- Deposited₹3 lakh83%
- Interest₹59,66417%
Balance by year
How to use the RD calculator
Enter the amount you will deposit every month, the bank's RD interest rate and the tenure in months (banks offer 6 months to 10 years, usually in multiples of 3 months). The calculator shows the maturity amount and the interest earned.
The result assumes every instalment is paid on time; banks charge a small penalty for missed instalments. Post Office RD has a fixed 5-year term and a government-set rate — enter that rate and 60 months to estimate it.
Formula
Indian banks compound RD interest quarterly. Each monthly instalment R earns interest for the months it stays deposited, so the k-th-from-last instalment grows to R × (1 + i)^(k/3). Summing all instalments gives the standard formula:
M = R × [(1 + i)^n − 1] ÷ [1 − (1 + i)^(−1/3)]- R = monthly instalment
- i = quarterly rate = annual rate ÷ 400
- n = number of quarters = months ÷ 3
Example: ₹5,000 a month at 7% for 12 months → about ₹62,311. Individual banks may round differently, so expect a difference of a few rupees.
Frequently asked questions
How is RD interest calculated?
Banks compound RD interest quarterly. The maturity value is M = R × [(1+i)^n − 1] ÷ [1 − (1+i)^(−1/3)], where R is the monthly deposit, i is the annual rate ÷ 400 and n is the number of quarters. Each instalment earns interest only for the time it is deposited, so the effective return on the total invested is lower than the headline rate.
What will I get on ₹5,000 per month RD for 5 years?
At 7% interest, depositing ₹5,000 a month for 60 months (₹3 lakh in total) gives about ₹3.59 lakh at maturity, i.e. roughly ₹59,000 of interest.
Is RD better than SIP?
An RD gives a guaranteed, fixed return and protects capital, which suits short-term goals. A SIP in equity mutual funds has historically earned more over 5+ years but its returns are not guaranteed. Many people use RDs for goals under 3 years and SIPs for longer goals.
Is RD interest taxable and is TDS deducted?
Yes. RD interest is taxed at your slab rate. Banks deduct 10% TDS once your total interest from deposits at that bank crosses ₹50,000 a year (₹1,00,000 for senior citizens from FY 2025-26).
Can I withdraw an RD before maturity?
Most banks allow premature closure with a penalty, typically 0.5–1% lower interest than the contracted rate. Post Office RD allows premature closure after 3 years.