🪙 RD Calculator

What is a recurring deposit (RD)?

A recurring deposit lets you save a fixed amount every month with a bank or post office and earn a guaranteed interest rate, much like a fixed deposit spread across monthly instalments. It's ideal for building a habit of saving towards a goal — a holiday, a gadget, school fees or an emergency fund — without any market risk. This RD calculator shows your maturity value and the interest you'll earn.

How to use the RD calculator

1. Enter the amount you'll deposit every month.
2. Enter the bank's interest rate (6.7% is the current post office 5-year RD rate).
3. Choose the tenure in months — RDs typically run from 6 months to 10 years.

RD maturity formula

Indian banks compound RD interest every quarter. Each instalment grows for the time it remains deposited:

M = Σ R × (1 + r ÷ 4)^{(months remaining ÷ 3)}

Here R is the monthly instalment and r the annual rate as a decimal. The first instalment earns interest for the full tenure, the last one for just one month. Banks often quote the equivalent closed form M = R × [(1 + i)n − 1] ÷ [1 − (1 + i)−1/3], with i = r/4 and n the number of quarters — both give the same answer.

Example

Depositing ₹5,000 a month for 5 years at 6.7%: you deposit ₹3,00,000 in total and receive about₹3,56,830 at maturity, earning roughly ₹56,830 in interest.

RD vs FD

Use an RD when you save from your monthly income, and an FD when you already have a lump sum. For the same rate, an FD earns more interest because the whole amount is invested from day one — compare with theFD calculator.

Disclaimer: Results are estimates for educational purposes only and are not financial, investment or tax advice. Please verify with your bank, broker or a SEBI-registered adviser before acting. Read the full disclaimer.