2026 RD Calculator: Maturity, Interest and TDS

Find your recurring deposit maturity and interest with quarterly compounding, see the interest after TDS, and compare it against a lump-sum FD.

How the RD calculator works

A recurring deposit is a savings account where you pay a fixed amount every month for a fixed term, and the balance compounds quarterly until it matures. This calculator takes your monthly deposit, the rate and the tenure, then shows the maturity value, how much of it is your own money against interest, the interest left after TDS, and what the same total would earn as a lump-sum FD. The rate stays editable, so it works for the post office or any bank.

On the default numbers the saving adds up steadily. Paying ₹5,000 a month at 6.7% for 5 years puts in ₹3,00,000 and matures to about ₹3,56,829, so the interest earned is about ₹56,829. Every installment starts earning from the month you pay it, which is why the later deposits earn far less than the first.

The RD maturity formula

RD maturity is M = R times [(1 + i) to the power n, minus 1] divided by [1 minus (1 + i) to the power minus one-third], where R is the monthly installment, i is the annual rate divided by 400, and n is the number of quarters. The rate is divided by 400 because interest compounds quarterly, so i is the quarterly rate as a decimal, and n counts the quarters in the term. On a ₹5,000 monthly deposit at 8% for 1 year the formula returns ₹62,647, the same figure the bank calculators show.

The minus one-third in the denominator is doing quiet work. It accounts for each month's deposit sitting for part of a quarter before the next compounding date, since three months make up one quarter. Without it the formula would assume every deposit lands exactly on a quarter boundary, which is never how a real RD runs.

That term is also where published formulas go wrong. One calculator ranking for this term prints the maturity as R times [(1 + i) to the power n, minus 1] times (1 + i), all divided by i, which is the future value of a deposit arriving once a quarter. Fed a monthly instalment it falls short by about two thirds. On its own worked example of ₹10,000 a month for 5 years at 7%, the figure it displays is ₹7,17,486 and the formula it prints returns ₹2,41,164.

You can catch that without doing any arithmetic:

Add up your instalments. ₹10,000 a month for 60 months is ₹6,00,000.
A maturity value below that is impossible, because an RD never pays back less than you put in.
₹2,41,164 is less than ₹6,00,000, so the formula is wrong before you check anything else.

Worth keeping as a habit with any RD figure you are handed. The maturity has to exceed the sum of the deposits, and the gap between them is the interest.

Where the maturity comes from

About ₹3,00,000 of the ₹3,56,829 maturity on the default RD is simply your own deposits, and only about ₹56,829 is interest. The split matters because an RD earns less than the rate suggests at first glance: your final month's deposit earns interest for a single month, so the effective return on the whole scheme is lower than a one-time deposit at the same rate. The donut above shows the two parts of the maturity at a glance.

That is the trade for being able to save gradually. You do not need a lump sum to start an RD, and the discipline of a fixed monthly debit is the point, so the slightly lower return buys a savings habit.

What happens if you miss an instalment

A missed instalment on a post office RD costs ₹1 for every ₹100 of the instalment, charged for each month it stays unpaid, and four consecutive defaults discontinue the account. On a ₹1,000 RD that is ₹10 a month, which is small; losing the account is not.

The sequence is worth knowing before it happens:

Miss a month and the fee accrues at ₹1 per ₹100 of the instalment, per month of default.
After four consecutive defaults the account is discontinued and stops taking deposits.
You can revive it within two months of that fourth default, by paying the arrears and the accumulated fees together.
Miss the revival window and the account stays shut. The balance is safe and is paid with interest at maturity, but the remaining months of saving are gone.

Paying ahead works the other way. Deposit six or more instalments in advance and the post office pays a rebate, around ₹10 on a ₹100 account for six months paid ahead and roughly double for twelve. It also removes any chance of a default across the prepaid period, which is the quieter benefit.

FD or RD

On the same total money an FD earns more than an RD, because the whole amount is deposited upfront and compounds from day one. The calculator shows this directly: the ₹3,00,000 you would pay into the default RD over 5 years, if you had it upfront as a lump-sum FD at 6.7%, would mature to about ₹4,18,220 against the RD's ₹3,56,829.

Option	You need upfront	Matures to (5 yr at 6.7%)
RD, ₹5,000 a month	Nothing, you save monthly	₹3,56,829
FD, ₹3,00,000 lump sum	The full ₹3,00,000	₹4,18,220

So the choice is not really about the rate, since both use quarterly compounding at the same rate. It is about whether you have the money now or are building it up. The FD calculator covers the lump-sum side in full.

Tax on RD interest, and TDS

RD interest is fully taxable at your income tax slab, and banks deduct 10% TDS once your annual RD interest crosses ₹50,000, or ₹1,00,000 for senior citizens, from FY2025-26. These thresholds rose on 1 April 2025, from ₹40,000 and ₹50,000. Form 121 stops the deduction when your estimated total income for the year is nil. It replaced Forms 15G and 15H on 1 April 2026, folding the separate under-60 and 60-plus declarations into one, and it is filed under section 393(6) with the bank at the start of the year. TDS is adjusted against your final tax either way, so it is a cashflow item and not an extra charge.

On the default ₹5,000 RD the annual interest is only about ₹11,366, well below the limit, so no TDS applies. Push the installment to ₹25,000 a month and the annual interest of about ₹56,829 crosses the general threshold, so a general depositor sees 10% deducted while a senior citizen, with the ₹1,00,000 limit, does not. Switch the depositor type to apply the higher senior limit.

Post office and premature closure

The post office recurring deposit pays 6.70% a year compounded quarterly over a 5-year term of 60 installments, with a minimum of ₹100 a month in multiples of ₹10. It is the same math as a bank RD, so this calculator works for it once you enter the 6.70% rate. Bank RD rates run a little higher or lower, from about 6.5% to 7.5%, and most banks add about 0.50% for senior citizens where the post office pays everyone the same.

The two products differ on term as well as rate. A bank RD runs from six months to ten years, so you choose the tenure; the post office RD is fixed at five years, 60 instalments, with no shorter or longer option.

Breaking one early costs differently in each case:

A post office RD can be closed early only after 3 years, on Form 2, and the whole balance is then paid at the Post Office Savings Account rate rather than the RD rate. That is a far bigger haircut than a penalty.
A bank RD can usually be closed sooner, with a penalty of about 1% on the applicable rate.

For a steady monthly income, the POMIS calculator covers the post office monthly income scheme.

What this does not promise

RD rates are set by each bank and the government, and they change, so the maturity here reflects the rate you enter rather than a live quote. Results follow the standard quarterly formula, and banks differ slightly on how they treat deposits made within a quarter, so your actual maturity can vary by a small amount. The TDS figure is an estimate on the current thresholds and is adjusted against your total tax. RD terms are set by the bank and the RBI, and this is not investment or tax advice, so a qualified adviser can confirm how a recurring deposit fits your plans.

Frequently asked questions

What is an RD calculator? An RD calculator works out the maturity value of a recurring deposit from your monthly installment, the interest rate and the tenure, using quarterly compounding. A ₹5,000 monthly RD at 6.7% for 5 years matures to about ₹3,56,829, on ₹3,00,000 deposited.

What is the RD maturity formula? RD maturity is M = R times [(1 + i) to the power n, minus 1] divided by [1 minus (1 + i) to the power minus one-third], where R is the monthly installment, i is the annual rate divided by 400, and n is the number of quarters. This compounds each installment quarterly, so ₹5,000 a month at 8% for 1 year gives ₹62,647.

What is the post office RD interest rate? The post office recurring deposit pays 6.70% per annum, compounded quarterly, over a 5-year term of 60 monthly installments, with a minimum of ₹100 a month in multiples of ₹10. Bank RD rates vary from about 6.5% to 7.5%, so enter your bank rate in the calculator.

How much will 2,000 a month for 5 years give in a post office RD? A ₹2,000 monthly post office RD grows to about ₹1,44,246 over 5 years at 7.1%, on ₹1,20,000 deposited, so it earns roughly ₹24,000 of interest. The exact figure moves with the rate, which the government revises each quarter.

Is an FD or an RD better? An FD earns more than an RD for the same total money, because the whole amount is deposited upfront and compounds from day one, while an RD builds up month by month. On ₹3,00,000, a lump-sum FD reaches about ₹4,18,220 against an RD maturity of ₹3,56,829, but the RD suits savers who do not have the lump sum ready.

What happens if I miss an RD instalment? On a post office RD the fee is ₹1 for every ₹100 of the instalment for each month of default, so ₹10 a month on a ₹1,000 RD. Four consecutive defaults discontinue the account, and it can be revived within two months of that fourth default by paying the arrears and fees together. Miss that window and the account stays shut, with the balance paid at maturity but the remaining months of saving lost.

How long can a recurring deposit run? A bank RD runs from six months to ten years, so the tenure is yours to choose. The post office RD is fixed at five years, 60 instalments, with no shorter or longer option.

How do I tell whether an RD figure is wrong? Add up your instalments and compare. An RD maturity can never be less than the total you deposited, because the interest only adds to it. One calculator ranking for this term prints a formula that returns ₹2,41,164 on ₹6,00,000 of deposits, which fails that test instantly even though the figure its calculator displays is roughly right.

Is RD interest taxable, and what is the TDS? RD interest is fully taxable at your income tax slab, and banks deduct 10% TDS once your annual RD interest crosses ₹50,000, or ₹1,00,000 for senior citizens, from FY2025-26. Form 121, which replaced Forms 15G and 15H on 1 April 2026, stops the deduction if your estimated total income for the year is nil.

Can I close an RD early? A post office RD allows premature closure after 3 years, and the interest is then paid at the lower savings-account rate, while banks charge a penalty of about 1% on the applicable rate. Breaking an RD early therefore returns less than the maturity value shown here.

Do senior citizens get a higher RD rate? Most banks add about 0.50% to the RD rate for senior citizens aged 60 and above, and the TDS-free interest limit is higher at ₹1,00,000 a year. The post office pays the same rate to everyone, so the senior benefit there is only the higher TDS limit.

RD (recurring deposit) calculator

Key takeaways