RD Calculator.
Enter the monthly instalment, the interest rate and the number of months. We apply the quarterly compounding formula used by Indian banks and the post office and show the maturity amount, total deposits and interest earned. Runs entirely in your browser.
Formula: M = R × [(1 + i)^n − 1] ÷ [1 − (1 + i)^(−1/3)], where R is the monthly instalment, i is the quarterly rate and n the number of quarters. This is the standard Indian bank and post office RD formula; a few banks differ by a rupee or two in rounding.
What you'll get.
A real example of what this tool produces. Run it above with your own inputs.
A recurring deposit is the savings product for people with a steady monthly income but no lump sum: a salon owner setting aside Rs 5,000 a month for new chairs, a family saving for a wedding two years away, or a shopkeeper building the deposit for a bigger shop. You commit to a fixed instalment every month for six months to ten years, the bank pays the fixed deposit rate for that tenure, and you get the whole amount with interest at the end.
The maturity figure is not as obvious as a fixed deposit because each instalment earns interest for a different length of time: the first for the full tenure, the last for only a month. Indian banks and the post office compound quarterly and use a standard formula that handles this, and this calculator applies that same formula so the result matches what the bank shows on the deposit receipt, give or take a rupee of rounding.
Enter the instalment, the rate and the tenure in months. You get the maturity amount, the total you will have deposited, the interest earned, the amount in words, and a note on whether the interest is likely to cross the TDS threshold, which banks have applied to recurring deposits since 2015.
How to use the rd calculator
Enter the monthly instalment you will deposit. Most banks accept a minimum of Rs 100 to Rs 500; the post office minimum is Rs 100.
Enter the interest rate from the bank rate card for the tenure. RD rates are usually the same as the FD rate for the same period.
Enter the tenure in months, from 6 to 120. Many banks accept tenures in multiples of three months; the post office RD is fixed at 60 months.
Select senior citizen if applicable so the TDS note uses the Rs 1,00,000 threshold.
Click Calculate maturity to see the maturity amount, total deposits and interest.
Why this matters for your business
Discipline with a known outcome. An RD turns a goal into a monthly number. If a salon needs Rs 2 lakh for new equipment in two years, the calculator tells you that about Rs 7,750 a month at 7 percent gets you there.
Better than a savings account. Savings interest is 2.5 to 3.5 percent at most banks; an RD pays the FD rate of 6.5 to 7.5 percent on the same monthly surplus.
Know the TDS position before you open it. Since June 2015, RD interest counts towards the Section 194A threshold, so a large instalment can trigger deduction in the later years.
Tips for better results
- Missing an instalment attracts a small penalty, typically Rs 1 to Rs 2 per Rs 100 per month at banks and Rs 1 per Rs 100 at the post office, so set a standing instruction from your salary date.
- Compare the RD rate with a short FD rate at the same bank; some banks pay a little less on RDs for tenures under a year.
- An RD can be used as collateral for a loan of up to 80 to 90 percent of the balance at most banks, usually at 1 to 2 percent above the deposit rate.
- For the post office RD, a loan is available after 12 instalments and the account can be extended for another five years at maturity.
- If your income is below the taxable limit, submit Form 15G or 15H at the start of each financial year so the bank does not deduct TDS.
- For goals more than five years away, compare the RD with a monthly SIP in a mutual fund using the SIP calculator; the expected return is higher but not guaranteed.
Example
A real-world walkthrough
A salon owner in Jaipur wants to replace three styling chairs and a wash station, which will cost about Rs 2 lakh, in two years. She can spare Rs 8,000 a month. Her bank offers 7 percent on a 24-month recurring deposit.
She enters Rs 8,000, 7 percent and 24 months. The calculator shows a maturity of about Rs 2,06,344 against Rs 1,92,000 deposited, with interest of about Rs 14,344, roughly Rs 7,170 a year, well under the TDS limit. She opens the RD with a standing instruction on the 5th of every month, and the maturity lands two weeks before the salon closes for the refit.
Frequently asked questions
How is recurring deposit interest calculated?
Indian banks and the post office compound RD interest quarterly and use the formula M equals R times the quantity one plus i raised to n minus one, divided by one minus the quantity one plus i raised to minus one third, where R is the monthly instalment, i is the quarterly rate (annual rate divided by four) and n is the number of quarters (months divided by three). The formula accounts for the fact that each instalment earns interest for a shorter period than the one before it. For Rs 5,000 a month at 7 percent for 12 months it gives a maturity of about Rs 62,313, or interest of Rs 2,313 on Rs 60,000 deposited. Banks round the result to the nearest rupee, so the figure on your receipt may differ by a rupee.
Is RD interest taxable and does TDS apply?
Yes on both counts. Interest from a recurring deposit is taxable as income from other sources at your slab rate, in the year it accrues or is received depending on the method you follow consistently. Since 1 June 2015 recurring deposits have been covered by Section 194A, so a bank deducts TDS at 10 percent when the total interest on all your deposits with that bank in a financial year exceeds Rs 50,000, or Rs 1,00,000 for a senior citizen, under the FY 2025-26 limits. Post office RDs are exempt from TDS but the interest is still taxable. If your total income is below the exemption limit you can submit Form 15G or 15H to the bank to avoid the deduction.
What is the minimum and maximum tenure for an RD?
Most banks allow a recurring deposit from six months to ten years, often in multiples of three months. The post office recurring deposit has a fixed tenure of five years, extendable by another five years on request. Small finance banks and some private banks offer shorter and more flexible tenures, including flexi RDs where the monthly amount can vary. The calculator accepts any tenure from 6 to 120 months, so you can test the combination a particular bank offers.
What happens if I miss an RD instalment?
The deposit does not close, but the bank charges a small penalty for each delayed instalment, typically Rs 1 to Rs 2 per Rs 100 of instalment per month at banks and Rs 1 per Rs 100 at the post office, and the maturity amount is reduced by the interest lost on the missed months. If a bank RD remains unpaid for several consecutive months the bank may discontinue it and pay the balance with interest at the applicable rate. The post office closes an RD if four or more instalments are in default unless it is revived within two months. The simplest safeguard is a standing instruction from the account that receives your salary or business collections.
Can I withdraw an RD before maturity?
Yes. Banks allow premature closure, usually after a minimum of three months, and pay interest at the rate applicable to the period the deposit actually ran minus a penalty of about 0.5 to 1 percent, the same treatment as a fixed deposit. Partial withdrawal is generally not allowed; you close the whole account. A better option for a short-term need is a loan against the RD, which most banks give up to 80 to 90 percent of the balance at a rate one to two percent above the deposit rate, so the deposit keeps running. The post office RD allows one withdrawal of up to 50 percent of the balance after one year.
RD or SIP: which is better for monthly savings?
They answer different needs. A recurring deposit gives a fixed, guaranteed return, currently 6.5 to 7.5 percent at most banks, and is suitable for a goal with a fixed date within one to three years, such as a deposit on a shop, school fees or a festival stock purchase. A systematic investment plan in an equity or hybrid mutual fund has historically returned more over five years and longer, but the value fluctuates and can be lower than the amount invested in the short term. Many households use an RD for the near-term goal and a SIP for retirement or a child education fund. The SIP calculator on this site lets you compare the two side by side.
Is a post office RD better than a bank RD?
The post office recurring deposit pays a rate set by the government every quarter, 6.7 percent for the period this page was written, with a fixed five-year tenure, a minimum of Rs 100 a month and no upper limit. It carries a sovereign guarantee and is exempt from TDS, although the interest is taxable. Bank RDs offer more flexibility in tenure, usually slightly higher rates for senior citizens, online operation through the bank app, and DICGC insurance up to Rs 5 lakh. For a five-year horizon and someone who prefers no TDS paperwork, the post office RD is a good choice; for shorter or longer tenures, or for convenience, a bank RD wins.
Does this calculator store my data?
No. The instalment, rate and tenure are used only in your browser to compute the result, and nothing is sent to a server or saved. Rates are not pulled from any bank, so take the rate from the bank or post office rate card for the exact tenure. The output is an estimate for planning; the deposit receipt from the bank is the binding figure.
Your entire online presence, on one subscription.
Salons and beauty studios and more. Website, free domain, Google Business and SEO autopilot from ₹249/month.