RD Calculator
Find out how much your monthly savings can grow into with a recurring deposit.
What is a Recurring Deposit (RD)?
A Recurring Deposit is a savings product offered by banks and post offices across India that lets you invest a fixed amount every month for a chosen tenure. At the end of the term you receive your total deposits plus the interest they earned. RDs are popular because they encourage disciplined, small monthly savings while still offering assured, fixed returns — the rate is locked in when you open the account and does not move with the market. Most banks let you open an RD online in minutes, with tenures ranging from 6 months to 10 years.
How the RD maturity is calculated
This calculator estimates your maturity value using a monthly-compounding formula:
M = P × (((1 + i)^n − 1) / i) × (1 + i)
Pis your fixed monthly deposit.iis the monthly interest rate, calculated as annual rate ÷ 12 ÷ 100.nis the total number of monthly instalments (years × 12).
Most banks actually compound RD interest quarterly, not monthly. This tool uses a monthly-compounding approximation, so treat the maturity figure as indicative. Your bank's exact payout may differ by a few rupees to a few hundred rupees depending on the compounding convention.
RD maturity at a glance
The table below shows the approximate maturity value for a few common monthly deposits at an interest rate of 6.75% p.a. Use it as a quick reference, then fine-tune the exact figures with the sliders above.
| Monthly deposit | After 1 year | After 3 years | After 5 years |
|---|---|---|---|
| ₹2,000 | ₹24,896 | ₹80,009 | ₹1,43,063 |
| ₹3,000 | ₹37,344 | ₹1,20,013 | ₹2,14,595 |
| ₹5,000 | ₹62,240 | ₹2,00,022 | ₹3,57,658 |
| ₹10,000 | ₹1,24,479 | ₹4,00,043 | ₹7,15,317 |
A ₹5,000 monthly RD over five years turns ₹3,00,000 of deposits into roughly ₹3,57,658 — the extra ₹57,658 is interest working quietly in the background.
A worked example
Suppose you deposit ₹5,000 every month for 5 years at 7% p.a. Over 60 instalments you contribute ₹3,00,000 of your own money. Using the formula above, the maturity value works out to about ₹3,60,053, of which roughly ₹60,053 is interest. Because each instalment earns interest for a different length of time, the first deposit compounds for nearly five years while the last one earns for just a month — which is why the interest component builds up steadily rather than all at once.
Reading your results
The calculator splits your maturity amount into two parts: the total you deposited and the interest earned. The donut chart shows the proportion of each, so you can quickly see how much of your maturity value came from your own contributions versus growth from interest.
Why the interest looks small at first
In the early months each deposit has had little time to accumulate interest. As the tenure lengthens, later contributions add up and earlier deposits keep compounding, so the interest portion grows faster towards the end. The yearly breakdown below the result makes this trend easy to spot. To explore how compounding frequency changes the outcome, try the Compound Interest Calculator.
RD vs FD vs SIP
An RD suits you if you want to save a fixed sum every month with guaranteed returns. A Fixed Deposit is better when you have a lump sum ready to invest at once — compare payouts with the FD Calculator. A SIP in mutual funds also uses monthly instalments but carries market risk with the potential for higher long-term returns; model it with the SIP Calculator.
| Feature | RD | FD | SIP |
|---|---|---|---|
| How you invest | Fixed amount monthly | One-time lump sum | Fixed amount monthly |
| Returns | Fixed, assured | Fixed, assured | Market-linked, variable |
| Risk level | Very low | Very low | Moderate to high |
| Deposit cover | Up to ₹5 lakh (DICGC) | Up to ₹5 lakh (DICGC) | Not applicable |
| Taxation | Interest at slab rate | Interest at slab rate | Capital gains rules |
| Best for | Disciplined short-term saving | Idle lump sum | Long-term wealth |
If you prefer a long-tenure, tax-free, government-backed option, the PPF Calculator helps you weigh these routes against your goals.
Tax on RD interest and TDS
Interest earned on an RD is fully taxable. It is added to your income under "Income from Other Sources" and taxed at your applicable slab rate — there is no special exemption for RD interest.
Banks also deduct TDS at 10% once your total interest from that bank crosses the threshold in a financial year — currently around ₹50,000 for most depositors and ₹1,00,000 for senior citizens. If your PAN is not linked, TDS is deducted at 20%. Where your total income is below the taxable limit, you can submit Form 15G (or Form 15H for senior citizens) so the bank does not deduct TDS. Remember that TDS is only a part-payment; you must still declare the full interest and settle any balance while filing your return. Estimate your slab with the Income Tax Calculator.
Post office RD
India Post runs a 5-year National Savings Recurring Deposit that works much like a bank RD but carries a government guarantee. The interest rate is reviewed by the government every quarter and has recently been around 6.7% p.a., compounded quarterly. You can open one at any post office with a modest minimum monthly deposit, and the account can be continued for a further five years after it matures. Post office RD interest is taxable in the same way as bank RD interest.
Premature closure and penalties
An RD is designed to be held for its full term. If you close a bank RD early, you usually receive interest at a reduced rate — typically 0.5% to 1% lower than the contracted rate — as a penalty. Post office RDs generally allow premature closure only after three years, and the amount then earns only the Post Office Savings Account rate. Missing a monthly instalment can also attract a small default fee, so pick a monthly amount you can comfortably sustain for the entire tenure.
Tips to get more from your RD
- Choose a longer tenure where possible, since compounding rewards time.
- Compare rates across banks, small finance banks and post offices before opening an RD.
- Senior citizens usually get an extra 0.25% to 0.75%, so check for special slabs.
- Avoid premature withdrawal, which reduces both your interest rate and your returns.
- Ladder several RDs of different tenures so your funds mature at staggered dates.