Calculate the maturity value of a Recurring Deposit (RD) from your fixed monthly deposit, annual interest rate, and tenure.
How to Use the RD Calculator
Enter the "Monthly Deposit (₹)" you plan to deposit every month.
Enter the "Annual Interest Rate (%)" offered on the recurring deposit.
Enter the "Tenure (months)" of the RD.
Click "Calculate" to see your total deposits, interest earned, and maturity value.
How RD Maturity Is Calculated
A recurring deposit is a series of small fixed deposits, one opened every month. Each instalment earns interest only for the time it stays in the account, so the first deposit earns interest for the full tenure while the last one earns interest for just one month.
Banks and post offices in India compound RD interest every quarter. This calculator follows the same method: each instalment grows as Deposit × (1 + Rate ÷ 400) raised to the power (months remaining ÷ 3), and the maturity value is the sum of all instalments after growth. Total interest is simply the maturity value minus the total amount you deposited.
Because interest is credited quarterly and later instalments are invested for shorter periods, the effective return on an RD is noticeably lower than the headline rate applied to your total deposits. On a 5-year RD at 7%, interest works out to roughly 17% of the money you put in, not 35%.
Worked Example
Suppose you deposit ₹5,000 every month for 5 years (60 months) at 7% per annum. You deposit ₹3,00,000 in total. The first instalment stays invested for 20 quarters and grows to about ₹7,074, while the last instalment stays for only one month and grows to about ₹5,029. Adding up all 60 instalments gives a maturity value of about ₹3,59,664, so the interest earned is about ₹59,664.
How the same ₹5,000 monthly deposit at 7% grows over different tenures:
Tenure
Total Deposited
Interest Earned
Maturity Value
1 year
₹60,000
₹2,311
₹62,311
2 years
₹1,20,000
₹9,099
₹1,29,099
3 years
₹1,80,000
₹20,686
₹2,00,686
5 years
₹3,00,000
₹59,664
₹3,59,664
10 years
₹6,00,000
₹2,68,509
₹8,68,509
Figures are rounded to the nearest rupee and assume every instalment is paid on time and the rate stays fixed. Your bank may round interest at each quarter, so its statement can differ by a few rupees.
Things to Know About RDs in India
Interest rates: Banks usually offer the same rate on an RD as on an FD of similar tenure, and many give senior citizens an extra 0.25% to 0.50%. Post Office RDs run for 5 years at a rate the government reviews every quarter. Check the current rate with your bank or India Post before you open the account.
Tax: RD interest is added to your income and taxed at your slab rate. Banks deduct TDS once your total interest from that bank in a financial year crosses the threshold (₹50,000 for most people and ₹1,00,000 for senior citizens from April 2025). If your total income is below the taxable limit, you can submit Form 15G, or Form 15H if you are a senior citizen, to avoid TDS. Confirm current limits with the Income Tax Department.
Early closure: Most banks allow you to close an RD before maturity, but they typically pay interest at a lower rate for the period actually completed, minus a penalty. Plan the tenure around when you will actually need the money.
Missed instalments: Banks and the post office charge a small fee for late instalments, and several missed instalments in a row can lead to the account being closed or frozen. Setting up auto-debit from your savings account avoids this.
When an RD Makes Sense
An RD works well when you have a fixed goal 1 to 5 years away, such as a school fee payment, a vacation or the down payment on a two-wheeler, and you want a guaranteed amount at the end. Deposits in a scheduled bank are covered by DICGC insurance up to ₹5 lakh per depositor per bank. If your goal is more than five years away and you can accept market ups and downs, an equity SIP has historically had higher potential returns, though with no guarantee. For long-term tax-free savings, PPF is another option to compare.
Frequently Asked Questions
The calculator treats each monthly deposit as a separate deposit and compounds it quarterly, the way Indian banks and the post office do. Each instalment grows as Deposit × (1 + Rate ÷ 400) to the power (months remaining ÷ 3), and the maturity value is the total of all instalments. Small differences from your bank statement can come from rounding at each quarter.
Yes, banks typically lock in the interest rate at the time you open the RD account, so the rate you enter should stay constant for the entire tenure.
Most banks charge a small penalty for missed RD installments, which isn't factored into this calculator. This tool assumes every monthly deposit is made on time.
Yes. RD interest is taxed at your income tax slab rate in the year it accrues. Banks deduct TDS once your total interest from that bank in a year crosses the TDS threshold, which was ₹50,000 for most people and ₹1,00,000 for senior citizens from April 2025. TDS is not the final tax, so you still report the interest in your return.
If you already have a lump sum, an FD at the same rate earns more because the whole amount earns interest from day one. An RD suits you when you are saving from monthly income and do not yet have the lump sum. Many people use an RD to build up money and then move the maturity amount into an FD.