About the RD Calculator
A recurring deposit (RD) lets you save a fixed amount every month and earn fixed interest. Indian banks and the post office compound RD interest quarterly; this calculator uses the same method.
How to use the RD Calculator
- Enter your monthly deposit.
- Enter the RD interest rate.
- Choose the tenure in months.
- See your maturity value and interest earned.
Formula used
Maturity = R × ((1 + i)^n − 1) ÷ (1 − (1 + i)^(−1/3)), where R = monthly deposit, i = annual rate ÷ 400 (quarterly) and n = number of quarters.
Frequently asked questions
What happens if I miss an RD instalment?
Banks may charge a small penalty, and repeated misses can lead to closure. Check your bank’s rules.
Is RD interest taxable?
Yes, it is taxed at your slab rate and TDS may apply.
RD or SIP?
RD gives fixed, guaranteed returns; SIPs in equity funds can earn more over the long term but are market-linked.
Last reviewed: November 7, 2026