How to use the RD calculator
- Enter the amount you will deposit every month.
- Enter the interest rate – it starts at the post office 5-year RD rate (6.7% for October–December 2026).
- Enter the tenure in years and months.
How RD interest is calculated
Banks and the post office compound RD interest every quarter. Each monthly deposit earns interest for the months left until maturity, so the first deposit earns the most and the last one the least:
M = \sum_{k=1}^{n} R \left(1 + \dfrac{r}{400}\right)^{\frac{n - k + 1}{3}}M– maturity value,R– monthly deposit,r– yearly rate in %,n– number of months
60 deposits of ₹1,000 = ₹60,000, and the maturity value is ₹71,366 – about ₹11,366 in interest.
Maturity value of ₹5,000 a month
| Tenure | Deposited | At 6.5% | At 7% | At 7.5% |
|---|---|---|---|---|
| 1 year | ₹60,000 | ₹62,143 | ₹62,311 | ₹62,478 |
| 2 years | ₹1,20,000 | ₹1,28,425 | ₹1,29,099 | ₹1,29,776 |
| 3 years | ₹1,80,000 | ₹1,99,122 | ₹2,00,686 | ₹2,02,265 |
| 5 years | ₹3,00,000 | ₹3,54,954 | ₹3,59,664 | ₹3,64,449 |
| 10 years | ₹6,00,000 | ₹8,44,940 | ₹8,68,509 | ₹8,92,880 |
Have a lump sum instead? Use the FD calculator. Investing monthly in a mutual fund? Try the SIP calculator.
Frequently asked questions
How is RD maturity calculated?
Each monthly deposit earns compound interest, credited quarterly, for the months it stays in the account. The maturity value is the sum of all the deposits with their interest.
What is the post office RD interest rate?
The post office 5-year recurring deposit pays 6.7% a year (October–December 2026), compounded quarterly. The rate is reviewed every quarter.
What happens if I miss an RD instalment?
Banks and the post office charge a small penalty for a late instalment, and several missed instalments can close the account early. The calculator assumes every deposit is on time.
RD or SIP – which is better?
An RD gives a fixed, guaranteed return; a SIP in an equity fund can earn more over long periods but the value goes up and down. Many people use an RD for short goals and a SIP for long ones.
Is RD interest taxable?
Yes. It is added to your income and taxed at your slab rate, and banks deduct TDS when the yearly interest passes the limit.