# RD Calculator

> Work out the maturity value of a bank or post office recurring deposit from the monthly instalment, interest rate, tenure and compounding frequency.

Category: India tax & investing · Applies to: India · Last updated: 2026-10-29
Interactive calculator: https://calculators.geekmidst.com/calculators/recurring-deposit-maturity-calculator

In a recurring deposit you pay a fixed amount every month. Each instalment earns interest from the month it is paid, compounded (usually quarterly) until maturity.

Also called: Recurring deposit calculator, RD interest calculator.

## Inputs
- Monthly instalment (default 5000)
- Interest rate (per year) (unit %; default 7)
- Tenure (unit months; default 60)
- Interest compounded (options: Quarterly, Monthly, Yearly; default quarterly)
- Currency (default INR)

## Results
- Maturity value
- Total deposited
- Interest earned

## Formula

```
M = Σ P × (1 + r ÷ q)^(q × t ÷ 12) over every instalment, where t is the months it stays invested. For quarterly compounding: M = P × [(1 + i)^(n/3) − 1] ÷ [1 − (1 + i)^(−1/3)], i = r ÷ 4
```

Where:
- P: monthly instalment
- r: annual interest rate ÷ 100
- q: compounding periods per year
- n: tenure in months

## Worked example
1. i = 7% ÷ 4 = 1.75% a quarter; n = 60 months = 20 quarters.
2. (1.0175)²⁰ = 1.41478 and 1 − (1.0175)^(−1/3) = 0.0057662.
3. M = 5,000 × 0.41478 ÷ 0.0057662 ≈ ₹3,59,664.

**Result:** ₹5,000 a month for five years at 7% compounded quarterly matures at about ₹3.60 lakh, of which ₹59,664 is interest.

## What the result means

An RD earns less than a lump-sum fixed deposit at the same rate, because each instalment is invested for a shorter time. Compare the interest with what a SIP or a PPF might earn over the same period.

## Assumptions and limits
- Each instalment is paid at the start of its month and earns interest for the remaining months.
- The rate is fixed for the tenure, as it is for bank and post office RDs once opened.
- Some banks round the maturity differently or use slightly different day counts.
- TDS on interest and penalties for missed instalments are not included.

## Questions

### Is RD interest taxable?

Yes, RD interest is taxed as income at your slab rate, and banks may deduct TDS once interest crosses the threshold.

### Why is quarterly compounding used?

Quarterly compounding is a common convention for Indian RDs, but check the terms of your deposit and choose the frequency it states.

## Related calculators
- [PPF Calculator](https://calculators.geekmidst.com/calculators/ppf-maturity-calculator)
- [Sukanya Samriddhi Calculator](https://calculators.geekmidst.com/calculators/sukanya-samriddhi-maturity-calculator)
- [Compound Interest Calculator](https://calculators.geekmidst.com/calculators/compound-interest-calculator)
- [SIP Calculator](https://calculators.geekmidst.com/calculators/sip-calculator)

_Returns are illustrations at a constant rate, not predictions or guarantees. Investments can lose value. This is not investment advice._

Source: GM¹X CalcVerse — https://calculators.geekmidst.com/calculators/recurring-deposit-maturity-calculator