# RD Calculator – Recurring Deposit

URL: https://speedycalculator.com/calculators/finance/rd/
Last updated: 2026-10-25

> The RD calculator works out the maturity value of a recurring deposit – a fixed monthly deposit for a set number of months with interest compounded quarterly, as Indian banks and the post office calculate it.

## Inputs

- Monthly deposit
- Interest rate (p.a.) (%)
- Period (years, months)

## Results

- Total deposit
- Maturity value
- Interest earned

## Formula

```
Monthly-equivalent rate i = (1 + r/4)^(1/3) − 1
Maturity = R × ((1 + i)^n − 1) ÷ i × (1 + i)
Interest = maturity − R × n
```

## Explanation

RDs suit people who want a fixed return with small monthly deposits. Bank RD rates are similar to fixed deposit rates; the post office 5-year RD pays a government-set rate. Interest is taxable and TDS applies above ₹50,000 (₹1 lakh for seniors).

### How to use the RD Calculator – Recurring Deposit

- **Monthly deposit**
- **Interest rate (p.a.)**
- **Period**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter the monthly deposit, interest rate and the number of months.

### Tips

- Figures use the latest published rates; government scheme rates are revised every quarter.
- Choose between the old and new tax regimes carefully – deductions only count in the old regime.
- Keep proofs of investments and rent for your employer and the tax return.
- Use the official portal of each scheme for exact maturity values.

### Common mistakes to avoid

- Assuming scheme interest rates are fixed for the whole term.
- Forgetting tax on interest from fixed and recurring deposits.
- Missing the yearly minimum deposit on PPF or Sukanya Samriddhi accounts.

### Inputs explained

FieldWhat to enterMonthly depositAmount in ₹Interest rate (p.a.)In %PeriodUnits: years, months

### What each result means

- **Total deposit** = [Monthly deposit]×[Period]
- **Maturity value** = fvc((1 + [Interest rate (p.a.)]÷400)^(1÷3) - 1, [Period], 0, [Monthly deposit], 1)
- **Interest earned** = [Maturity value] - [Total deposit]

### Example values

How the main result changes when **Monthly deposit** changes and everything else stays at the example values above:

Monthly depositMaturity value2,500178,414.573,750267,621.865,000356,829.146,250446,036.437,500535,243.7210,000713,658.29

## Worked example

Inputs — Monthly deposit: ₹5,000; Interest rate (p.a.): 6.7 %; Period: 5 years.

Results — Total deposit = ₹300,000.00; **Maturity value = ₹356,829.14**; Interest earned = ₹56,829.14.

## FAQ

**How is RD interest calculated?**
Interest is compounded quarterly on each monthly instalment.

**Is RD interest taxable?**
Yes, at your slab rate; TDS applies above the threshold.

**Can I break an RD early?**
Usually yes, with a small penalty on the rate.

**What formula does the RD Calculator – Recurring Deposit use?**
Monthly-equivalent rate i = (1 + r/4)^(1/3) − 1.


## Sources

- [National Savings Institute – Small savings schemes](https://www.nsiindia.gov.in/)