RD Calculator – Recurring Deposit Maturity & Interest Calculator

How to Use the RD Calculator

1. Enter your monthly RD deposit, or use the slider.
2. Enter the expected annual interest rate, or tap one of the quick-select buttons.
3. Enter your RD tenure in years.
4. Review the estimated Maturity Amount, Total Invested and Interest Earned, along with the chart.
5. Expand the Year-wise RD Growth Schedule to see how the estimate builds up year by year, and download it as a PDF if needed.

What Is a Recurring Deposit (RD)?

A Recurring Deposit is a savings scheme, typically offered by banks and post offices, where you commit to depositing a fixed amount every month for a set tenure. Unlike a Fixed Deposit (FD), where you invest a lump sum upfront, an RD lets you build up savings gradually through smaller, regular monthly deposits, while earning interest on the accumulating balance.

How Does an RD Calculator Work?

1. You choose a monthly deposit amount.
2. You enter an annual interest rate.
3. You select the RD tenure in years.
4. The calculator works through the deposits month by month: each month it adds your deposit to the running balance, then adds interest for that month calculated on the updated balance.
5. After the full tenure, the running balance is shown as the estimated Maturity Amount, and the difference between that and your total deposits is shown as the estimated Interest Earned.

Because deposits are made periodically rather than as a single lump sum, an RD's growth pattern differs from an FD: each monthly instalment has a different amount of time to earn interest before maturity, with the earliest deposits accumulating interest over almost the full tenure and the final deposit earning very little before maturity.

This calculator applies interest to the running balance every month, using the annual rate divided by 12. This is the actual methodology this tool uses to produce its estimate — actual bank and post office RD products may use their own specific compounding conventions (which can differ from a straightforward monthly calculation), so treat this calculator's output as an illustrative estimate rather than an exact match to any particular bank's formula.

Practical RD Examples

These figures come directly from this calculator's own logic — you can reproduce any of them by entering the same monthly deposit, rate and tenure above. As with all figures on this page, the interest rate is an assumption you provide for the estimate, not a rate promised by any specific bank or post office.

RD Calculator for Different Monthly Deposits

The monthly deposit amount you choose has a direct, proportional effect on your total invested amount, and a compounding effect on the interest earned — doubling your monthly deposit roughly doubles both your total invested and your estimated interest earned, all else being equal. Common monthly deposit amounts people check include ₹1,000, ₹2,000, ₹5,000, ₹10,000 and ₹20,000, depending on their budget and savings goal. Rather than publishing separate fixed examples for every amount, this calculator lets you enter your own exact monthly deposit to see a precise estimate for your situation, alongside a full year-wise breakdown.

RD Tenure: How Long Should You Commit?

RD tenures commonly range from about 6 months up to 10 years, though the exact minimum and maximum tenure, and which specific durations are offered, depends on the bank or post office and the particular RD product. Shorter tenures (1–2 years) suit near-term goals and offer more flexibility, while longer tenures (5–10 years) let compounding work over more months, generally producing a proportionally larger estimated interest component. Not every institution offers every tenure length, so it's worth checking what's actually available before committing.

Use the Tenure field above to compare how a 1-year, 3-year, 5-year or 10-year commitment would affect your estimated maturity amount for the same monthly deposit and rate.

RD vs FD vs SIP

None of these is universally "better" — an RD suits disciplined monthly saving toward a known goal without market risk, an FD suits investing a lump sum you already have, and a SIP suits long-term investors comfortable with market-linked returns that aren't fixed or guaranteed. Many people use a combination depending on their goals, timeline and risk tolerance. If you want to compare a lump-sum deposit, our FD Calculator may help; for market-linked monthly investing, see our SIP Calculator.

Taxation on RD Interest

Interest earned on a recurring deposit is generally taxable as income, added to your total income and taxed at your applicable slab rate. Banks may deduct TDS (tax deducted at source) once your interest income crosses a specified threshold in a financial year — commonly cited figures are around ₹40,000 for regular taxpayers and a higher threshold for senior citizens, but these thresholds and rules can change, so please verify the current figures with the Income Tax Department or your bank rather than treating any number here as permanent.

Regular bank recurring deposits generally do not qualify for a deduction under Section 80C. Some sources describe specific tax treatment for certain post office recurring deposit products, but this varies and is a detail worth confirming directly with India Post or a tax advisor rather than assuming it applies to your particular RD. This calculator does not account for taxes — the Interest Earned figure shown is a gross estimate, before any tax is deducted.

Important Things to Know About RD Calculations

• Actual bank or post office maturity values can differ from this estimate, depending on the institution's specific interest calculation method.
• Interest rates vary by institution, tenure and sometimes by depositor category (such as senior citizens).
• Premature closure rules — including any penalty or reduced rate — differ by bank and product.
• Missed-instalment penalties may apply and vary by institution.
• Taxation on RD interest depends on applicable rules, which can change over time.
• This calculator provides an estimate only; it is not a quote, offer or guarantee from any bank, post office or financial institution.
• Always confirm current rates, tenure options and terms directly with your bank or post office before making a decision.

Frequently Asked Questions (RD)