# RD Calculator

> Maturity value of a bank or post office recurring deposit with quarterly compounding.

Interactive calculator: https://www.cashiq.in/tools/rd-calculator
Last updated: 2026-11-10

An RD calculator shows what a recurring deposit pays when you save a fixed amount every month. Banks compound RD interest quarterly. ₹5,000 a month for 24 months at 6.5% matures at ₹1,28,425: ₹1,20,000 deposited plus ₹8,425 interest.

## How it is calculated

```
Maturity = Σ D × (1 + r/4)^(4 × m/12)
```

- D is the monthly deposit and r the annual rate as a decimal.
- m is the number of months each deposit stays invested: the first deposit stays for the full tenure, the last for one month.
- Each deposit compounds quarterly, the method Indian banks use.

## Worked example

- Inputs: ₹5,000 a month for 24 months at 6.5%
- Result: Maturity value ₹1,28,425, interest ₹8,425
- Open it: https://www.cashiq.in/tools/rd-calculator?monthly=5000&rate=6.5&months=24

## Use it with your own numbers

Add query parameters to the calculator URL. The page renders the result, a one-sentence summary and a year-by-year table in its HTML.

| Parameter | Meaning | Allowed values |
| --- | --- | --- |
| `monthly` | Monthly deposit | 100 to 10,00,000 |
| `rate` | Interest rate (% a year) | 1 to 15 |
| `months` | Tenure (months) | 6 to 120 |

Example: https://www.cashiq.in/tools/rd-calculator?monthly=5000&rate=6.5&months=24

JSON API: https://www.cashiq.in/api/v1/rd-calculator?monthly=5000&rate=6.5&months=24

## Rules and assumptions

- RD interest is taxed at your slab rate, and TDS applies on the same basis as FDs.
- Missing an instalment usually attracts a small penalty, and several missed instalments can close the RD.

## Frequently asked questions

### How is RD interest calculated?

Each monthly deposit earns compound interest, compounded quarterly, for the months it stays in the account. The calculator adds them up.

### Is an RD better than a SIP?

An RD gives a fixed, guaranteed return; a SIP in an equity fund can earn more over long periods but can also fall in value. Many people use an RD for short-term goals.

### Is RD interest taxable?

Yes, at your income tax slab rate.

## Sources

- [Reserve Bank of India](https://www.rbi.org.in/)
- [India Post](https://www.indiapost.gov.in/)

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Results are estimates for planning, not investment, tax or legal advice. Returns are assumptions, not guarantees. Source: CashIQ, https://www.cashiq.in/tools/rd-calculator