Skip to content
FinCalc India

Recurring Deposit (RD) Calculator

A recurring deposit (RD) lets you save a fixed amount every month for a set term at a fixed rate. It suits salaried savers building a corpus for a near-term goal.

Enter the monthly instalment, the interest rate and the tenure in months.

Assumptions used
  • Quarterly compounding, all instalments paid on time.
  • TDS and missed-instalment penalties are not deducted.

Enter your details

₹
10010,00,000
%
112
months
6120

RD tenures are set in months, usually 6 to 120.

Results

Maturity Amount

₹3,57,771

Total Deposited
₹3,00,000
Total Interest
₹57,771
  • Deposited₹3.00 L(84%)
  • Interest₹57.8 K(16%)
Year-wise progress (5 rows)
YearDepositedValueInterest
1₹60,000₹62,244₹2,244
2₹1,20,000₹1,28,829₹8,829
3₹1,80,000₹2,00,059₹20,059
4₹2,40,000₹2,76,257₹36,257
5₹3,00,000₹3,57,771₹57,771

RD maturity formula

Banks compound RD interest quarterly per RBI norms. Each monthly instalment earns interest for the number of months it stays invested. The standard closed-form is:

M = R × [ (1 + i)^n − 1 ] ÷ [ 1 − (1 + i)^(−1/3) ]

  • R = monthly instalment
  • i = r ÷ 400 (quarterly rate as a fraction)
  • n = number of quarters = tenure in months ÷ 3

Worked example

  1. ₹5,000 a month for 60 months (5 years) at 6.8% p.a.
  2. Total deposited = ₹3,00,000.
  3. Maturity ≈ ₹3,57,000, so interest ≈ ₹57,000.

RD vs FD vs SIP

  • RD: save monthly, fixed and low-risk return, interest taxed at slab. Good for a 1–3 year goal.
  • FD: one lump sum, similar risk and taxation, usually a slightly higher rate than RD.
  • SIP in a mutual fund: market-linked, higher expected return over long periods, but can lose value in the short term.

Enter your bank's exact rate for an accurate maturity value. TDS is not modelled. Missing an RD instalment usually attracts a small penalty and can reduce the maturity value.

TDS on RD

Interest on recurring deposits is taxable at your slab rate, and banks deduct TDS once total interest at that bank crosses the annual threshold. Submit Form 15G/15H if your total income is below the taxable limit.

Rates & rules: Indicative, 2025. Source: Typical scheduled-commercial-bank card rates. Enter your bank's exact rate for an accurate maturity value. TDS is not modelled.

This calculator is for education and illustration only. Results are estimates based on the inputs and assumptions shown and are not financial, investment, tax or legal advice. Verify figures with your bank, a registered adviser or the relevant government department before acting.

Frequently asked questions

How is RD interest calculated?

Interest is compounded quarterly. Every instalment earns interest for the months remaining until maturity, so earlier instalments earn more than later ones.

Can I withdraw an RD before maturity?

Yes, most banks allow premature closure with a penalty of about 0.5% to 1% on the applicable rate. Partial withdrawals are generally not allowed.

What happens if I miss an RD instalment?

The bank levies a small penalty per missed instalment and, after a few consecutive misses, may close the account prematurely.

Is RD interest taxed?

Yes, at your income-tax slab rate. TDS is deducted once interest at the bank crosses the annual threshold, unless you submit Form 15G/15H and are eligible.

Related calculators & guides

Calculators

Guides