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
| Field | What to enter |
|---|---|
| Monthly deposit | Amount in ₹ |
| Interest rate (p.a.) | In % |
| Period | Units: 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 deposit | Maturity value |
|---|---|
| 2,500 | 178,414.57 |
| 3,750 | 267,621.86 |
| 5,000 | 356,829.14 |
| 6,250 | 446,036.43 |
| 7,500 | 535,243.72 |
| 10,000 | 713,658.29 |
Formula
Monthly-equivalent rate i = (1 + r/4)^(1/3) − 1Maturity = R × ((1 + i)^n − 1) ÷ i × (1 + i)Interest = maturity − R × nWorked 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.
Frequently asked questions
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.