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RD Calculator

Enter the amount you deposit each month, the rate and the number of months. Each instalment earns interest only from the month it is paid, so an RD earns noticeably less than an FD of the same total at the same rate.

Banks offer 6 to 120 months

Enter the monthly deposit, rate and tenure to see the maturity amount.

How to use this tool

  1. Enter the amount you will deposit each month.
  2. Enter the interest rate for the tenure you choose.
  3. Enter the tenure in months — banks usually offer 6 to 120.
  4. Read the maturity amount and the interest earned.

Formula and method

Maturity = Σ P × (1 + r ÷ 4)^(months remaining ÷ 3)
P
— monthly instalment
r
— annual rate as a decimal
months remaining
— from the instalment's month to maturity

Each instalment compounds quarterly for the time it is in the account: the first for the full tenure, the last for one month. Banks publish the same sum in a rearranged closed form.

Worked examples

₹5,000 a month for 12 months at 7%

  1. First instalment: 5,000 × 1.0175^4 = ₹5,359
  2. Last instalment: 5,000 × 1.0175^(1/3) = ₹5,029
  3. Sum of all 12 instalments

₹62,311 at maturity — ₹2,311 of interest on ₹60,000 deposited.

₹10,000 a month for 5 years at 6.8%

  1. 60 instalments, ₹6,00,000 deposited

About ₹7,15,542 at maturity.

Notes and limitations

  • Interest is taxable at your slab rate, and banks deduct TDS on RD interest above the yearly threshold.
  • A missed instalment usually attracts a small penalty and can delay maturity; this calculator assumes every instalment is paid on time.
  • Post office RDs run for five years with a rate set by the Government each quarter; the same quarterly-compounding calculation applies.
  • Closing an RD early normally pays a reduced rate.

Frequently asked questions

How is RD interest calculated?

Each monthly instalment is treated as its own deposit and compounded quarterly until maturity. The first instalment earns interest for the whole tenure and the last for one month, and the results are added together.

Is an RD better than an FD?

At the same rate, an FD earns more because the whole amount is invested from day one. An RD suits people saving from monthly income who do not have the lump sum.

RD or SIP?

An RD pays a fixed, known rate and your capital is safe; an SIP in a mutual fund can earn more or less, with no guarantee. The SIP calculator shows what a given assumed return would produce.

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