RD Calculator

What is an RD calculator?

An RD calculator works out the maturity amount of a recurring deposit. Enter the monthly deposit, the RD interest rate and the tenure in months, and this online RD calculator shows how much you will receive at maturity, how much of it is interest and a year-wise table. It uses quarterly compounding, the method used by SBI and other Indian banks and by the India Post RD, so the result matches your bank's RD maturity figure when the inputs are the same.

What is RD in bank?

What is RD? A recurring deposit is a savings scheme where you deposit a fixed amount every month for a fixed period and earn a fixed interest rate, usually the same as or close to the bank's FD rate for that tenure. At the end you receive all your deposits plus compound interest in one go. An RD is ideal for building a habit of saving a set amount from each salary – for a holiday, a gadget, a wedding fund or an emergency fund – with no market risk.

Tenure: banks offer 6 months to 10 years; the Post Office RD runs for 5 years and can be extended.
Minimum deposit: often ₹100 a month; no upper limit at most banks.
Safety: bank RDs are insured by DICGC up to ₹5 lakh per depositor per bank.

How to use the RD calculator

Enter your monthly deposit (instalment).
Enter the rate of interest your bank or the post office offers.
Enter the tenure in months – 12 months for 1 year, 60 months for 5 years, 120 months for 10 years.
Pick senior citizen if you get the extra rate.

RD calculation formula

How to calculate RD interest? Each monthly instalment earns compound interest, compounded quarterly, for the time it stays in the account. The first instalment earns for the full tenure; the last one for just one month. Adding them up gives the standard RD formula used in India:

M = R × [ (1 + i)ⁿ − 1 ] ÷ [ 1 − (1 + i)^−1/3 ]

M = maturity value
R = monthly instalment
i = quarterly interest rate = annual rate ÷ 400
n = number of quarters = months ÷ 3

The calculator adds each instalment's value, R × (1 + i)^k/3, for k = 1 to the number of months, which gives exactly the same result and also works when the tenure is not a whole number of quarters.

RD calculation formula with example

You deposit ₹5,000 a month for 5 years (60 months) at 7%. i = 7 ÷ 400 = 0.0175 and n = 20 quarters.

M = 5,000 × [(1.0175)²⁰ − 1] ÷ [1 − (1.0175)^−1/3] = ₹3,59,664. You deposit ₹3,00,000 and earn ₹59,664 as interest.

Monthly RD at 7%	1 year	3 years	5 years
₹1,000	₹12,462	₹40,137	₹71,933
₹5,000	₹62,311	₹2,00,686	₹3,59,664
₹10,000	₹1,24,621	₹4,01,373	₹7,19,328

RD interest rates (2026)

Bank RD rates usually follow the bank's FD rates for the same tenure – roughly 6–7.25% at large banks and up to 8% or more at small finance banks as of 2026. The Post Office RD (5-year) rate is 6.7% for July–September 2026, set by the Government every quarter. Senior citizens usually get about 0.50% more at banks, but not on the post office RD.

RD vs FD

An RD vs FD comparison is about how you have the money. An FD takes a lumpsum on day one, so the whole amount earns interest for the full period. An RD collects money monthly, so on average your money is invested for only about half the tenure and earns less total interest. Use the FD calculator if you already have the full amount; use the RD calculator if you are saving from monthly income.

RD vs SIP

Both an RD and a SIP invest a fixed sum every month. An RD gives a guaranteed rate, while a SIP in an equity mutual fund has no guarantee but has historically given higher returns over 7+ years. ₹5,000 a month for 10 years at 7% in an RD grows to about ₹8.7 lakh; at an assumed 12% in a SIP, about ₹11.6 lakh. Compare with the SIP calculator. Many people keep short-term goals in an RD and long-term goals in SIPs.

Tax on RD interest

RD interest is fully taxable at your slab rate. Banks deduct TDS at 10% when your total interest from FDs and RDs at one bank crosses ₹50,000 a year (₹1 lakh for senior citizens). Submit Form 15G/15H if your income is below the taxable limit. Your net return after tax is lower than the headline rate.

Things to know before opening an RD

Missed instalments attract a penalty, and several missed instalments can close the account.
Premature closure usually means a 0.5–1% lower rate.
You cannot usually change the instalment; for a rising deposit (an RD with yearly increment), open a new RD each year or consider a step-up SIP.
Long tenures such as 15 or 20 years are rare for RDs; for long-term, tax-free saving the PPF calculator is more relevant.

RD calculator in Excel (xls)

In Excel, put month numbers 1 to 60 in column A and use =5000*(1+7%/4)^(A1/3) in column B, then sum column B. The total equals the RD maturity value shown above.

Tenure, deposits and long horizons: what to enter

What is RD calculator and how it works

What is RD calculator? It is a tool that adds up each monthly instalment with quarterly compound interest to give the maturity amount – the same quarterly compounding Indian banks use.

RD calculator in months

The tenure field is an RD calculator in months: 12 for one year, 24 for two years, 60 for five years. This matches how banks quote RD tenures.

RD calculator monthly investment and monthly interest

This is an RD calculator monthly investment tool – the instalment is monthly. RDs do not pay out a monthly interest; interest is compounded and paid at maturity.

RD calculator yearly and yearly deposit

For an RD calculator yearly view, check the year-wise table. RDs take monthly deposits; for an RD calculator yearly deposit style of saving, compare PPF.

RD calculator for 15, 20, 25, 30 and 40 years

Banks usually cap RDs at 10 years. Running the RD calculator for 15, 20 or 30 years is an illustration that assumes you renew at the same rate: enter 180, 240 or 360 months.

RD calculator India Post

For an RD calculator India Post result, enter 60 months and 6.7% (the July–September 2026 rate).

RD calculator for senior citizens

Choose the senior citizen option for an RD calculator for senior citizens result with 0.50% extra.

RD calculator with step up and yearly increment

RDs do not support a rising instalment. For an RD calculator with step up plan, open a new RD each year for the extra amount and add the results.

RD calculator vs FD calculator and SIP calculator

An RD calculator vs FD calculator check shows why FDs earn more on the same total. An RD calculator vs SIP calculator check shows the gap between guaranteed and market returns.

RD calculator with inflation

For an RD calculator with inflation view, subtract inflation from the RD rate. At 7% interest and 5% inflation, your real return is about 2%.

Is this RD calculator free?

Yes. It is an RD calculator online free for any bank in India, with no login. The RD calculator formula is shown above so you can check the result.

RD calculator with lumpsum or initial deposit

A recurring deposit has no separate lumpsum, but you can pair one with an FD. To use this RD calculator with a lumpsum investment or initial deposit, work out the two parts separately and add them. ₹5,000 a month for 60 months at 7% matures at about ₹3,59,664; an initial ₹1 lakh placed in a 5-year FD at 7% grows to about ₹1,41,478; together that is about ₹5,01,142. The FD calculator handles the lumpsum part.

RD calculator for yearly payment or yearly investment

Recurring deposits are monthly by design. If you prefer a yearly payment, open a fresh FD each year instead: ₹60,000 invested once a year for 5 years at 7% (quarterly compounding, all held to the end of year 5) grows to about ₹3.71 lakh – a little more than a ₹5,000 monthly RD because each yearly deposit goes in at the start of the year. The RD calculator's year-wise table shows the monthly route for comparison.

RD calculator monthly payout?

An RD does not pay monthly interest – interest compounds quarterly and is paid with the principal at maturity. If you want a monthly payout, a non-cumulative FD or a Post Office Monthly Income Scheme is the right product; use the RD calculator only for the saving phase.

RD calculator daily and day wise

Banks and the post office take RD instalments monthly, not daily. Some co-operative banks run daily deposit (pigmy) schemes, where an agent collects small sums every day; treat the monthly total as the RD instalment for a close estimate: ₹100 a day is roughly ₹3,000 a month, which at 7% for 60 months matures at about ₹2.16 lakh. For day wise interest on a deposit that runs a few extra days, banks use simple interest for the odd days.

How to calculate RD returns, interest rate and XIRR

To calculate RD returns, subtract total deposits from the maturity value: ₹3,59,664 − ₹3,00,000 = ₹59,664 of interest on a ₹5,000, 60-month RD at 7%. To find the RD interest rate you actually earn, use an RD XIRR calculation in Excel – list each ₹5,000 instalment as a negative amount with its date and the maturity value as a positive amount, then apply =XIRR(). For a 7% RD compounded quarterly the answer is about 7.19% a year, the effective annual rate. When you compare the best RD interest rates between banks, compare these effective rates, and remember small finance banks pay more but are insured by DICGC only up to ₹5 lakh per bank.

Frequently asked questions

How is RD interest calculated?

Each monthly instalment earns interest compounded quarterly for the months it stays in the account. The standard formula is M = R × [(1 + i)^n − 1] ÷ [1 − (1 + i)^(−1/3)], with i = rate ÷ 400 and n = number of quarters.

What is the maturity amount of ₹5,000 RD for 5 years?

At 7% with quarterly compounding, ₹5,000 a month for 60 months matures at about ₹3,59,664 – ₹3,00,000 of deposits and ₹59,664 of interest.

What is the post office RD interest rate?

The Post Office 5-year RD pays 6.7% a year for July–September 2026, compounded quarterly. The Government reviews the rate every quarter.

Is RD better than FD?

Neither is better in general. An FD earns more on the same total amount because all the money is invested from day one; an RD suits people saving monthly from their income.

Is RD interest taxable?

Yes, RD interest is added to your income and taxed at your slab rate. TDS applies above the yearly threshold.

Can senior citizens get a higher RD rate?

Most banks give senior citizens about 0.50% extra on RDs. Select the senior citizen option in the RD calculator to include it.

Can I add a lumpsum to my RD?

Most banks do not accept a lumpsum into an RD beyond the fixed instalment. Put the lumpsum in an FD and add the two maturity values, as shown above.

Last updated 2026-09-18