RD Calculator
A recurring deposit compounds quarterly on each monthly instalment, so ₹5,000 a month for 60 months in a Post Office RD at 6.7% grows to ₹3,56,829, of which ₹56,829 is interest. Enter any bank or post office rate and a tenure in months to see your maturity value.
By the Calculators With Steps team · Updated November 10, 2026 · How we check our math
- Total deposited
- ₹3,00,00060 instalments
- Interest earned
- ₹56,829
- Maturity per ₹100 a month
- ₹7,136.58
- Interest as % of deposits
- 18.94%
- Total deposited₹3,00,000
- Interest earned₹56,829
- Deposited
- Interest
Step-by-step working
- Quarterly rate i = 6.7 ÷ 400 = 0.01675
- Number of quarters n = 60 months ÷ 3 = 20
- M = R × [(1 + i)^n − 1] ÷ [1 − (1 + i)^(−1/3)]
- M = 5,000 × [(1 + 0.01675)^20 − 1] ÷ [1 − (1 + 0.01675)^(−1/3)] = ₹3,56,829
- Interest = ₹3,56,829 − ₹3,00,000 deposited = ₹56,829.14
Show year-by-year balance
| Period | Total deposited | Interest so far | Balance |
|---|---|---|---|
| Yr 1 | ₹60,000 | ₹2,210 | ₹62,210 |
| Yr 2 | ₹1,20,000 | ₹8,694 | ₹1,28,694 |
| Yr 3 | ₹1,80,000 | ₹19,746 | ₹1,99,746 |
| Yr 4 | ₹2,40,000 | ₹35,679 | ₹2,75,679 |
| Yr 5 | ₹3,00,000 | ₹56,829 | ₹3,56,829 |
Assumes every instalment is paid on time at the start of the month. ₹3.57 lakh is before tax: RD interest is taxed at your slab rate, and banks deduct TDS once your total interest crosses the yearly limit.
How to use the RD calculator
- Monthly deposit – the instalment you will pay every month. Post Office RDs start at ₹100 a month, in multiples of ₹10.
- Interest rate – the bank’s RD rate for your tenure, or 6.7% for the Post Office 5-year RD (October–December 2026).
- Tenure – the number of monthly instalments. A Post Office RD always runs 60 months; banks usually offer 6 to 120 months.
The result shows the maturity amount, how much you deposited and how much came from interest, the maturity value per ₹100 a month, and a year-by-year table.
RD formula (quarterly compounding)
Indian banks and the post office compound RD interest every quarter, while you deposit every month. The standard formula is:
M = R × [(1 + i)^n − 1] ÷ [1 − (1 + i)^(−1/3)]
- M = maturity value
- R = monthly instalment
- i = quarterly rate = annual rate ÷ 400
- n = number of quarters = months ÷ 3
Why the odd-looking denominator? Each instalment earns interest for a different number of months. The last one earns for 1 month, the one before for 2 months, and the first for the full term. With quarterly compounding, one month of growth is (1 + i)^(1/3), so the maturity value is the sum R × (1 + i)^(1/3) + R × (1 + i)^(2/3) + … + R × (1 + i)^n. Adding up that geometric series gives the formula above.
Worked example: Post Office RD
₹5,000 a month for 60 months at 6.7%:
- i = 6.7 ÷ 400 = 0.01675 and n = 60 ÷ 3 = 20 quarters
- M = 5,000 × [(1.01675)^20 − 1] ÷ [1 − (1.01675)^(−1/3)] = ₹3,56,829
- Deposited: 5,000 × 60 = ₹3,00,000, so interest = ₹56,829
| Post Office RD at 6.7% for 5 years | Total deposited | Maturity value |
|---|---|---|
| ₹100 a month | ₹6,000 | ₹7,136.58 |
| ₹2,000 a month | ₹1,20,000 | ₹1,42,732 |
| ₹5,000 a month | ₹3,00,000 | ₹3,56,829 |
| ₹10,000 a month | ₹6,00,000 | ₹7,13,658 |
Bank RD examples
Bank RDs have flexible tenures, and the formula is the same. At 7%, ₹5,000 a month for 12 months matures at ₹62,311 (₹2,311 interest), and for 36 months at ₹2,00,686 (₹20,686 interest). Notice how interest grows faster than the deposits: tripling the tenure multiplies interest by almost nine, because more instalments stay invested for longer.
Post Office RD rules
- Minimum deposit: ₹100 a month, then any amount in multiples of ₹10. There is no maximum.
- Tenure: 5 years (60 instalments). The account can be continued for another 5 years at maturity, with or without deposits.
- Premature closure: allowed after 3 years, but interest is then paid at the savings account rate of 4%.
- Rate: fixed for the life of the account at the rate that applied when you opened it. The current rate is 6.7%, compounded quarterly.
RD vs FD vs SIP
An RD is the monthly version of a fixed deposit: same safety, same tax treatment, but you build the amount bit by bit. If you already have a lump sum, an FD earns more because the whole amount is invested from day one. If your goal is 5 years or more away and you can accept ups and downs, a mutual fund SIP has historically earned more than an RD, though without a guarantee. For long-term tax-free savings, look at the PPF calculator.
Tips for recurring deposits
- Set up auto-debit for the day after your salary credit. Missed instalments can attract a penalty and delay maturity.
- Match the tenure to the goal, such as a 12-month RD for a holiday or school fees due next year.
- Remember tax. In the 30% slab, with 4% cess, a 6.7% RD earns about 4.6% after tax.
RD Calculator: frequently asked questions
What is an RD in a bank?
A recurring deposit (RD) lets you deposit a fixed amount every month for a fixed term, usually 6 months to 10 years, and earn a fixed interest rate on it. At maturity you get all your instalments back with interest, compounded quarterly.
How is RD interest calculated?
Banks and India Post 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. ₹5,000 a month for 60 months at 6.7% matures at ₹3,56,829.
What is the Post Office RD interest rate now?
The 5-year Post Office Recurring Deposit pays 6.7% a year, compounded quarterly, for October to December 2026. The government reviews the rate every quarter, but the rate on your account is fixed when you open it.
What is the maturity amount of ₹100 a month in a Post Office RD?
At 6.7%, ₹100 a month for 5 years (₹6,000 deposited) matures at ₹7,136.58. Multiply by your monthly amount: ₹2,000 a month gives ₹1,42,732 and ₹10,000 a month gives ₹7,13,658.
Can I close a Post Office RD before 5 years?
Yes, after 3 years. On premature closure, interest is paid at the post office savings account rate (4%) instead of the RD rate, so you lose most of the RD benefit. You can also extend the account for another 5 years at maturity.
Is RD interest taxable?
Yes. RD interest is taxed at your slab rate, and bank RD interest is counted with your FD interest for TDS. Banks deduct 10% TDS if your total interest in a financial year exceeds ₹50,000 (₹1 lakh for senior citizens).
Is an RD better than a SIP?
They suit different goals. An RD gives a guaranteed, fixed return and suits savings for the next 1 to 3 years. A mutual fund SIP can earn more over 5 years or longer, but its returns are not guaranteed and can be negative in some years.
How we checked this page: every figure in the examples and FAQs above is produced by this calculator and verified by automated tests against known answers, and the rules and rates come from the sources below. Last updated . Spotted a problem? Tell us.