How to use the RD Calculator
- Enter how much you will deposit every month.
- Enter the RD interest rate and the tenure.
- See the maturity value, total deposits and interest earned.
About this tool
Indian banks and the post office compound recurring deposit interest every quarter, even though you deposit every month. So each instalment grows for the time it stays in the account: M = Σ R × (1 + r/400)k/3, adding up every instalment, where R is the monthly deposit, r the yearly rate in % and k the number of months that instalment stays invested (from the full tenure for the first instalment down to 1 month for the last).
For example, ₹5,000 a month for 12 months at 7% grows to about ₹62,311, of which ₹2,311 is interest. RD interest is taxable like FD interest. Banks change rates often, so use the rate shown by your bank or post office for your tenure.
Frequently asked questions
How is RD interest calculated in India?
Banks compound interest quarterly. Each monthly instalment earns compound interest for the number of months it stays in the account, and all of them are added up at maturity.
What is the maturity of ₹5,000 per month RD for 1 year at 7%?
About ₹62,311 — you deposit ₹60,000 and earn around ₹2,311 interest.
What happens if I miss an RD instalment?
Most banks charge a small penalty for late instalments and may close the RD after several missed months. Check your bank’s rules.
Is RD better than SIP?
An RD gives a fixed, guaranteed return; a mutual fund SIP can earn more over long periods but its value goes up and down. Many people use RDs for short-term goals.