How to use it
- Enter how much you will deposit every month.
- Enter the interest rate offered by your bank or the Post Office (% per year).
- Enter the tenure in months — from 6 to 120 — or drag the slider.
- Read the maturity value, total deposited and interest earned. Tap “Show yearly breakdown” for the running totals each year.
How RD maturity is calculated
In a recurring deposit you pay the same amount every month, and banks compound the interest every quarter. Indian banks commonly publish this formula for the maturity value:
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
The “−1/3” is there because each instalment stays invested for a whole number of months, which is a third of a quarter. The formula lets every instalment grow at the quarterly rate for exactly the time it stays in the account.
Worked example
₹1,000 a month for 12 months at 7% a year:
- i = 7 ÷ 400 = 0.0175, and n = 12 ÷ 3 = 4 quarters
- (1.0175)⁴ − 1 = 0.071859, and 1 − (1.0175)^(−1/3) = 0.005766
- M = 1,000 × 0.071859 ÷ 0.005766 ≈ ₹12,462 — ₹12,000 deposited plus about ₹462 of interest
We also check the formula against a month-by-month simulation of an RD ledger. The two agree within a few rupees, which is the size of difference you may see between bank calculators that round or count interest slightly differently.
₹5,000 a month at 7%
| Tenure | You deposit | Maturity value |
|---|---|---|
| 1 year | ₹60,000 | ₹62,311 |
| 2 years | ₹1,20,000 | ₹1,29,099 |
| 3 years | ₹1,80,000 | ₹2,00,686 |
| 5 years | ₹3,00,000 | ₹3,59,664 |
| 10 years | ₹6,00,000 | ₹8,68,509 |
Bank RD or Post Office RD?
A bank RD lets you choose the tenure, and the bank sets the rate. The Post Office RD runs for a fixed term, and its rate is set by the Government and reviewed every quarter. Both pay interest compounded quarterly, so this calculator works for either — just enter the rate and tenure that apply to you.
Before you open an RD
- RD rates are usually close to FD rates for the same tenure, but they differ between banks and change over time.
- Missing an instalment can attract a penalty; check your bank’s or the Post Office’s rules.
- RD interest is taxable, and TDS may apply when interest crosses the yearly threshold.
Have a lump sum instead? Use the FD calculator. For long-term, market-linked monthly investing, try the SIP calculator; for tax-saving long-term savings, see the PPF calculator.