RD Calculator
Calculate recurring deposit maturity and interest for banks and India Post RD, with quarterly compounding.
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This RD calculator works out what a recurring deposit pays at maturity. Enter a monthly instalment, the interest rate and the tenure in months to get the maturity value, the interest earned and the balance at each year end. It compounds quarterly, as India Post and most banks do, so you can compare a Post Office RD with a bank RD or plan a monthly saving towards a fixed goal.
Filling in the three boxes
- Monthly deposit (₹): the instalment you will pay every month. Type digits only (5000, not 5,000). Any positive amount is accepted, even below the Post Office minimum of ₹100.
- Interest rate (% a year): comes filled with 6.7%, the current Post Office RD rate. Replace it with your bank's RD rate for the same tenure. Rates outside 0% to 15% show an error.
- Tenure (months): starts at 60, the fixed term of a Post Office RD. Anything from 6 to 120 months is accepted, and a decimal is rounded to the nearest whole month.
Calculate maturity shows the maturity value, total deposited and interest earned, then a table with a row at every 12-month mark plus your exact tenure. A 30-month RD of ₹5,000 shows rows for 12, 24 and 30 months, ending at ₹1,63,630.
How quarterly compounding works on monthly instalments
RD interest compounds quarterly at i = annual rate ÷ 400, but money goes in monthly. Each instalment earns for the months it stays in the account, so one that stays k months grows to P × (1 + i)^(k/3). The tool assumes the deposit matures one month after the last instalment, so the first instalment earns for the whole tenure and the last for one month. Adding every instalment gives the formula published for Indian RDs:
M = R × [(1 + i)^n − 1] ÷ [1 − (1 + i)^(−1/3)]
Here R is the monthly instalment and n the number of quarters. The calculator adds the instalments one by one, which gives the same answer and handles tenures such as 13 or 17 months that are not whole quarters.
Worked example: ₹5,000 a month in a Post Office RD
- Quarterly rate: 6.7 ÷ 400 = 0.01675. Tenure: 60 ÷ 3 = 20 quarters.
- Top of the formula: 1.01675^20 = 1.3940669, minus 1 = 0.3940669.
- Bottom: 1.01675^(−1/3) = 0.9944782, so 1 − 0.9944782 = 0.0055218.
- Dividing at full precision gives 71.36583, and ₹5,000 × 71.36583 = ₹3,56,829.
You pay in ₹3,00,000 and earn ₹56,829. The first ₹5,000 grows to about ₹6,970, while the last earns barely ₹28. The tool's table:
| After | Deposited | Value |
|---|---|---|
| 12 months | ₹60,000 | ₹62,210 |
| 24 months | ₹1,20,000 | ₹1,28,694 |
| 36 months | ₹1,80,000 | ₹1,99,746 |
| 48 months | ₹2,40,000 | ₹2,75,679 |
| 60 months | ₹3,00,000 | ₹3,56,829 |
The average rupee is invested for only about half the tenure, which is why the interest looks modest: ₹3,00,000 placed in one go at 6.7%, compounded quarterly, would reach about ₹4,18,220 (see the FD calculator). A bank RD of ₹10,000 a month for 36 months at an assumed 7.25% gives ₹4,02,948, of which ₹42,948 is interest.
Post Office RD rules for October–December 2026
- Rate: 6.7% a year, compounded quarterly. Unchanged since 1 October 2023 and reviewed every quarter; the rate on your opening day holds for the whole term.
- Deposit: at least ₹100 a month in multiples of ₹10, with no upper limit. Joint accounts allow up to three adults; a guardian can open one for a minor.
- Term: 5 years, extendable by 5 more with or without deposits, at the rate you opened with. Enter 120 months to see the value if you keep paying.
- Early access: after one year and 12 deposits you can take a loan of up to 50% of the amount deposited, at 2 percentage points above the RD rate. Closure after 3 years is allowed, but interest is then paid as simple interest at the post office savings account rate.
- Advance deposits: paying 6 to 11 instalments ahead earns a rebate of ₹10 per ₹100 of monthly deposit, and 12 ahead earns ₹40.
Source: National Savings Recurring Deposit Scheme, 2019, summarised on the National Savings Institute RD page.
Tax, TDS and what the result leaves out
RD deposits get no Section 80C deduction (section 123 of the Income-tax Act, 2025), and for Tax Year 2026-27 the interest is fully taxable at your slab rate. In the 30% slab, cess lifts the effective rate to 31.2%, so the ₹56,829 above would shrink to about ₹39,098 after tax.
Banks deduct TDS at 10% (with PAN) once the interest on all your deposits with that bank crosses ₹50,000 in a tax year, or ₹1 lakh for senior citizens; these limits have applied since April 2025. TDS is an advance payment, not the final tax. The result is pre-tax and ignores missed-instalment fees, advance-deposit rebates and the lower payout on early closure.
RD, FD or PPF for a monthly saving?
An RD fits money that arrives monthly and is needed on a known date one to five years away: next year's school fees or a bike down payment. If the whole amount is already in your account, an FD earns more because all of it compounds from day one. For a goal 15 years away, PPF pays 7.1% for October–December 2026 with tax-free interest; compare it in the PPF calculator. These results are estimates, not financial or tax advice; confirm the rate with your bank or post office before opening the account.