RD calculator

What this tool is for

It works out what a monthly recurring deposit grows to, the way banks and the Post Office actually do it, where each instalment earns interest only for the time it stays in. It also runs backwards, to the monthly amount a goal needs, and handles missed instalments, early closure and TDS.

Who it's for: anyone saving a fixed amount each month towards something a year or two away; parents putting money aside for school fees; and people comparing a bank RD with the Post Office.

How an RD works

A recurring deposit (RD) is a fixed deposit you build month by month. You pay the same amount every month for a set time, the bank or post office adds interest, and at the end you get everything back in one sum. It suits people with a steady income who find it hard to save a lump sum.

Banks and the Post Office work out RD interest quarterly. Each monthly instalment earns interest only for the time it stays in, so the first instalment earns the most and the last one the least. The tool adds every instalment up this way, which matches the Post Office's own tables (₹100 a month for 5 years at 6.7% becomes about ₹7,137).

Selvi's little drops

Selvi runs a small tailoring shop in Kallakurichi. In October 2026 she opens a Post Office RD of ₹2,000 a month for 5 years at 6.7%. She deposits ₹1,20,000 in all, and on maturity she gets about ₹1,42,700: some ₹22,700 of interest, without ever having to set aside a big sum.

How to use this tool

1. Pick What I get, or Reach a goal to find the monthly deposit a target needs.
2. Type the monthly deposit and the rate. The Post Office rate is one tap away.
3. Set the years and months, and the date of your first deposit.
4. Turn on Senior citizen, After tax, Inflation, Missed instalments or Close it early as needed.

The table splits the interest into financial years (April to March), the way TDS and income tax work.

Post Office RD rules

• Runs for 5 years; it can be extended for 5 more.
• Minimum ₹100 a month, in multiples of ₹10.
• A missed month costs ₹1 per ₹100 of the deposit for each month late. After more than 4 missed months the account is discontinued, but it can be revived within two months by paying what is due.
• It can be closed after 3 years, but then earns only the Post Office savings rate (4%).
• You can borrow up to 50% of the balance after one year.
• Unlike the 5-year Post Office Time Deposit, the RD does not give the old regime's ₹1.5 lakh tax deduction.

Tax and TDS

RD interest is added to your income and taxed at your slab every year. Banks deduct TDS at 10% once your interest with them passes ₹50,000 in a financial year (₹1 lakh for senior citizens), counting all your deposits there together. If your total income is below the taxable limit, give the bank Form 121, which replaced Forms 15G and 15H from the 2026-27 tax year.

RD, FD or SIP?

An RD gives a fixed, guaranteed return, like an FD, but lets you save a little each month. An FD earns more on the same total, because all the money is in from day one. A mutual fund SIP has averaged more over long periods but goes up and down. Many people use an RD for goals one to three years away and a SIP for goals further out.

Common mistakes

• Comparing an RD with an FD of the same total. The FD earns more because all the money starts on day one; that is not a fair test.
• Choosing too long a tenure. If you may need the money early, a shorter RD avoids the closing penalty.
• Forgetting the date. Pay on the same date every month; late months cost a fee and a little interest.
• Ignoring tax. At the 30% slab plus cess, a 6.7% RD earns under 4.7% after tax.

Rates and rules here were checked in October 2026. This tool is a guide, not financial advice.