RD Calculator
Estimate recurring deposit maturity, monthly savings, interest, missed instalments, late fees, TDS, income tax and inflation-adjusted value.
Last Updated: July 22, 2026Calculate Recurring Deposit Maturity
Enter your bank's RD terms. The estimate uses quarterly compounding converted to an equivalent monthly rate and assumes each paid instalment enters at the start of the month.
Enter valid figures and select Calculate RD.
| Month | Scheduled instalment | Status | Deposits paid to date | Interest this month | Balance |
|---|
TDS is tax credit, not an extra return cost. The after-tax value subtracts estimated final tax only. It does not subtract TDS again. Late fees appear separately because bank recovery methods differ.
What Is an RD Calculator?
An RD calculator estimates the maturity amount of a recurring deposit. You commit a fixed monthly amount for a selected tenure, and the bank pays interest on each instalment for the time it remains in the account. Earlier instalments earn interest longer than later instalments.
Recurring deposits suit planned monthly saving. They differ from fixed deposits because you do not invest the full principal on day one. They also differ from a mutual-fund SIP because the RD uses a contracted deposit rate rather than market-linked returns.
This calculator supports a fixed monthly instalment or an annual step-up. It also shows the effect of unpaid instalments, late fees, TDS, estimated income tax and inflation. Use the bank's deposit receipt and current rate card for the final comparison.
How to Use This RD Calculator
- Enter the monthly amount you plan to deposit.
- Add the bank's quoted annual RD rate.
- Select regular resident or resident senior citizen. Enter an extra rate only if the bank offers it for the chosen scheme.
- Enter the tenure in complete months.
- Add an annual instalment increase if you want the monthly amount to rise every 12 months.
- Enter unpaid instalments and the bank's fee per instalment to test a missed-payment case.
- Select the TDS setting and a simplified marginal income-tax rate.
- Enter expected inflation to view maturity in today's rupees.
- Select Calculate RD. Review maturity, interest, tax estimates and the month-wise schedule.
Set annual increase, unpaid instalments and late fee to zero for a standard fixed-instalment RD estimate.
Recurring Deposit Formula
For a fixed monthly deposit, this tool converts the nominal quarterly-compounded annual rate into an equivalent monthly rate:
Equivalent monthly rate = (1 + r ÷ 4)1/3 − 1
Maturity = P × [((1 + i)n − 1) ÷ i] × (1 + i)
Here, P is the monthly deposit, r is the annual rate in decimal form, i is the equivalent monthly rate and n is the number of monthly instalments. The extra (1 + i) treats each paid instalment as entering at the start of the month.
When the annual deposit increase or missed-instalment option is active, the calculator uses a monthly ledger instead of the closed formula. It adds the applicable instalment at the start of each month and then credits one month of equivalent interest. Bank results may differ because of exact due dates, quarter-end rules, day counts and rounding.
Worked RD Example
Suppose you deposit ₹5,000 each month for 60 months at 7% per year, compounded quarterly. You make every instalment and do not increase the deposit.
- Total deposited: ₹3,00,000
- Estimated maturity: about ₹3,59,664
- Estimated gross interest: about ₹59,664
- Effective annual yield: about 7.19%
The first ₹5,000 instalment earns for the full 60-month run. The final instalment earns for about one month under this model. This timing explains why multiplying total deposits by a five-year compound-interest factor would overstate the result.
If you increase the monthly deposit by 10% each year, later annual blocks become ₹5,500, ₹6,050, ₹6,655 and ₹7,320.50 per month. Both the amount deposited and estimated maturity rise.
How Quarterly Compounding Works in an RD
Many Indian bank RDs quote an annual rate with quarterly compounding. Each monthly instalment has a different remaining period, so each earns a different amount. The calculator derives a consistent monthly rate from the quarterly factor. It does not divide the annual rate by 12, which would ignore the quoted compounding convention.
Actual bank methods still differ. A bank may calculate interest from exact payment dates to quarter-end, apply product-specific rounding, or treat late deposits differently. Use this result for planning, then compare it with the bank's official illustration.
Effective Annual Yield
At a 7% nominal rate compounded quarterly, effective annual yield is (1 + 0.07 ÷ 4)4 − 1, or about 7.19%. This yield describes one rupee invested for a full year. It does not mean every RD instalment earns for a full year.
RD Interest, TDS and Income Tax in 2026
RD interest is taxable according to the depositor's applicable income-tax rules. From April 1, 2026, deposit-interest TDS falls under Section 393 of the Income-tax Act, 2025. For interest paid by a bank, co-operative bank or eligible notified post-office scheme, the threshold is ₹50,000 for a person other than a senior citizen and ₹1,00,000 for a senior citizen. Review the official Section 393 table.
The threshold applies to aggregate eligible interest with the institution, not separately to the number shown by this calculator. Other FDs and RDs may cause the total to cross the limit. The tool groups interest into consecutive 12-month blocks because it does not know your opening date, exact tax-year credits or other deposits.
A resident with nil estimated tax liability may use Form 121, subject to the current conditions. Form 121 replaced the earlier Forms 15G and 15H under the 2026 rules.
TDS Is Not Final Tax
The calculator displays estimated TDS and estimated final tax separately. TDS acts as credit against final liability. Your return may show tax still payable or excess credit, depending on total income, the selected tax regime, deductions, rebates and other entries.
Resident senior citizens may qualify for a deduction of up to ₹50,000 on eligible deposit interest under Section 153, subject to its conditions. This calculator does not apply that deduction, cess, surcharge, rebates or advance-tax rules.
Missed RD Instalments and Late Fees
A delayed or missed instalment may attract a fee under the bank's account terms. Repeated defaults may also lead to closure or another adjustment. The amount and method vary, so the calculator asks you to enter the fee instead of assuming a universal penalty.
For a clear comparison, unpaid instalments are treated as the latest scheduled months. They do not enter the deposit balance or earn interest. The fee is shown separately and does not reduce maturity automatically. A bank may collect arrears, deduct charges from proceeds or use another settlement process.
If you paid an instalment late instead of leaving it unpaid, enter zero missed instalments for the base maturity and review the bank's own late-interest adjustment. This calculator does not reconstruct exact delayed payment dates.
RD Versus FD Versus SIP
| Feature | Recurring deposit | Fixed deposit | Mutual-fund SIP |
|---|---|---|---|
| Contribution | Monthly deposit | One lump sum | Periodic investment |
| Return | Contracted deposit rate | Contracted deposit rate | Market-linked |
| Capital fluctuation | No market NAV movement | No market NAV movement | NAV rises or falls |
| Best use | Short or medium planned saving | Existing lump-sum cash | Long-term market investing |
| Tax treatment | Interest generally taxable | Interest generally taxable | Fund and holding-period rules apply |
An RD provides predictable calculations when you know the rate and keep the schedule. A SIP offers no fixed return and carries market risk. Match the product with your time horizon, liquidity need, risk tolerance and tax position.
Senior Citizen RD Rates
Some banks offer resident senior citizens an extra rate on eligible recurring deposits. The spread, tenure and eligibility vary. Enter the quoted extra rate rather than assuming every bank offers 0.50%.
Selecting senior citizen adds the entered rate benefit and switches the TDS threshold used by the estimate to ₹1,00,000. It does not automatically claim Form 121 eligibility, the Section 153 deduction, a rebate or a special product.
Inflation and Real RD Value
The maturity figure is nominal. Inflation reduces what the amount buys. This calculator divides maturity by (1 + inflation)years to express it in today's money.
For example, ₹3.60 lakh received after five years has current purchasing power of about ₹2.69 lakh if inflation averages 6%. This does not mean money was deducted from the account. It shows the estimated reduction in purchasing power.
What to Check Before Opening an RD
- Compare the contracted rate and effective annual yield.
- Confirm instalment due dates, grace period and payment method.
- Check the penalty for delayed or missed deposits.
- Read premature closure and loan-against-deposit terms.
- Verify senior-citizen eligibility and the extra rate.
- Check whether interest across all deposits may cross the TDS threshold.
- Review nomination, maturity instructions and auto-renewal settings.
- Confirm deposit insurance eligibility and coverage with the institution.
A higher rate does not by itself make every deposit equally safe. Compare the institution, liquidity conditions and coverage before committing money.
Limitations of This RD Calculator
The tool assumes a fixed rate and converts quarterly compounding into an equivalent monthly rate. It excludes exact calendar dates, leap years, tax-year boundaries, bank-specific day counts, rounding, grace periods and partial-month rules.
The tax estimate multiplies gross interest by the selected marginal rate. It excludes cess, surcharge, deductions, rebates, other income and non-resident provisions. TDS uses only this modelled RD and rolling 12-month blocks.
Step-up deposits, missed instalments and late fees are planning scenarios. Your bank may not permit an automatic step-up inside one RD contract. You may need separate RDs or standing instructions. The bank's account statement and settlement calculation control the actual result.
Related Investment Calculators
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Frequently Asked Questions
How accurate is this RD calculator?
The arithmetic follows the entered rate, tenure and scenarios. Actual maturity may differ because banks use product-specific dates, quarter-end rules, rounding, penalties and tax entries.
How is RD maturity calculated?
Each paid monthly instalment earns interest for its remaining tenure. This tool converts quarterly compounding into an equivalent monthly rate and credits interest after each month's deposit.
What is the RD TDS threshold for 2026?
Under Section 393, the threshold for eligible bank, co-operative bank or notified post-office deposit interest is ₹50,000 for a person other than a senior citizen and ₹1,00,000 for a senior citizen.
Is TDS the final tax on RD interest?
No. TDS is tax credit. Final liability depends on total taxable income, tax regime, deductions, rebates and other applicable rules.
Does an RD always compound quarterly?
Many Indian bank RDs use quarterly compounding, but the exact calculation and credit method depend on the product. Check the bank's official terms.
What happens if I miss an RD instalment?
The bank may charge a late fee, collect arrears or close the account after repeated defaults. This tool models unpaid instalments as the latest scheduled months and shows fees separately.
Does selecting senior citizen claim a tax deduction?
No. It only adds the entered rate benefit and uses the higher deposit-interest TDS threshold. The calculator does not apply Section 153 or any other deduction.
What happens when the RD rate is 0%?
Maturity equals the deposits paid. Interest, effective yield, TDS and estimated income tax are zero.
Is an RD better than a SIP?
An RD offers a contracted deposit rate and no market NAV movement. A mutual-fund SIP is market-linked and has different risk and tax treatment. The better choice depends on your goal and risk tolerance.