RD Calculator
Enter the monthly instalment, the interest rate and the tenure. The calculator compounds each instalment quarterly, as banks and the Post Office do, and shows the balance month by month.
Growth table
Uses quarterly compounding, the method Indian banks and the Post Office use for recurring deposits. Instalments are assumed to be paid at the start of each month. Everything is calculated in your browser.
₹5,000 a month for three years at 7% comes to about ₹2,00,686. You put in ₹1,80,000, so the interest is about ₹20,686. That figure comes from one formula, which banks print in their RD circulars:
For the example, i = 7 ÷ 400 = 0.0175 and n = 36 ÷ 3 = 12. Then (1.0175)12 − 1 = 0.23144 and 1 − (1.0175)−1/3 = 0.0057662, so M = 5,000 × 0.23144 ÷ 0.0057662.
Each instalment earns for a different length of time
The formula is a shortcut for adding up 36 small deposits. The first ₹5,000 stays in the account for all 36 months and is compounded every quarter. The last one stays for a single month. Here is what some of them are worth on the maturity date:
| Instalment | Months in the account | Value at maturity | Interest earned |
|---|---|---|---|
| 1st | 36 | ₹6,157 | ₹1,157 |
| 13th | 24 | ₹5,744 | ₹744 |
| 25th | 12 | ₹5,359 | ₹359 |
| 34th | 3 | ₹5,088 | ₹88 |
| 36th | 1 | ₹5,029 | ₹29 |
Add all 36 rows and you get ₹2,00,686. This is also why an RD earns less than an FD of the same total: a ₹60,000 one-year FD at 7% grows to about ₹64,312, while ₹5,000 a month for a year at 7% reaches about ₹62,311. In the RD, the money is in the account for only about half the year on average. Use the FD calculator if you already have the lump sum.
Year by year
| Year | Deposited so far | Interest that year | Balance |
|---|---|---|---|
| 1 | ₹60,000 | ₹2,311 | ₹62,311 |
| 2 | ₹1,20,000 | ₹6,788 | ₹1,29,099 |
| 3 | ₹1,80,000 | ₹11,588 | ₹2,00,686 |
Interest in the third year is five times the first year's, because both the balance and the time it has been compounding keep growing.
Maturity for every ₹1,000 a month, quarterly compounding
Multiply by the number of thousands you deposit each month. ₹4,000 a month at 7% for 5 years, for instance, is 71,933 × 4, about ₹2,87,700.
| Rate | 1 year | 2 years | 3 years | 5 years | 10 years |
|---|---|---|---|---|---|
| You deposit | ₹12,000 | ₹24,000 | ₹36,000 | ₹60,000 | ₹1,20,000 |
| 6% | ₹12,395 | ₹25,551 | ₹39,514 | ₹70,064 | ₹1,64,429 |
| 6.5% | ₹12,429 | ₹25,685 | ₹39,824 | ₹70,991 | ₹1,68,988 |
| 6.7% | ₹12,442 | ₹25,739 | ₹39,949 | ₹71,366 | ₹1,70,855 |
| 7% | ₹12,462 | ₹25,820 | ₹40,137 | ₹71,933 | ₹1,73,702 |
| 7.5% | ₹12,496 | ₹25,955 | ₹40,453 | ₹72,890 | ₹1,78,576 |
Post Office RD rate
The Post Office 5-year RD pays 6.7% a year for accounts opened between 1 October and 31 December 2026 (as of November 2026). The Ministry of Finance reviews the rate every quarter, but yours stays fixed for the full five years. At 6.7%, ₹1,000 a month grows to about ₹71,366. The Post Office may round its own figures slightly differently.
Tax on RD interest
RD interest is taxed at your slab rate, the same as FD interest. As of November 2026 the bank deducts TDS at 10% (with a valid PAN) once your interest from all deposits with it crosses ₹50,000 in a financial year, or ₹1,00,000 for a senior citizen. A big RD can cross that alone: ₹20,000 a month at 7% for 5 years earns about ₹66,927 of interest in its fourth year. If you also save regularly in market-linked funds, FD vs RD vs SIP compares how each is taxed.
Frequently asked questions
What happens if I miss an RD instalment?
Banks usually charge a small fee for each late instalment, and several missed months in a row can get the account closed early at a lower rate. The Post Office RD has its own rules for missed deposits, set out in the scheme, so ask at the counter if you fall behind. An auto-debit set for a day or two after your salary arrives avoids the problem.
Can I close an RD before it matures?
Yes, at most banks, but you get a lower rate: typically the rate for the period the money actually stayed, minus a penalty. Under its 2019 scheme rules, a Post Office RD can be closed early only after three years from opening. Check your bank's terms before opening a long RD for money you might need sooner.
Why does my passbook figure differ by a few rupees?
Banks work with the exact dates your instalments arrived and often round interest at each quarter. This calculator assumes every instalment is paid on the first day of its month. If you paid late in some months, your actual interest will be slightly lower.