RD Calculator India – Post Office Recurring Deposit | PostOfficeCalculator.in

RD Calculator – India (Post Office & Bank Recurring Deposit)

Calculate maturity amount, interest earned, and see the step-by-step calculation for Post Office RD, SBI RD, HDFC RD, ICICI RD, and other bank recurring deposits.

Monthly Deposit (₹)

Annual Interest Rate (%)

Time Period (Months)

Compounding Frequency

Total Deposited: ₹3,00,000

Total Interest Earned: ₹52,296

Maturity Amount: ₹3,52,296

📘 Step-by-step calculation

1. Monthly Deposit (P) = ₹5,000, Annual Rate (r) = 6.7%, Time (t) = 60 months.

2. Compounding quarterly: n = 4. Monthly interest rate i = r / 1200 = 0.005583.

3. Number of months = 60. Using RD formula: M = P × [((1+i)^n – 1) / i] × (1+i).

4. (1+i)^60 = (1.005583)^60 ≈ 1.39328. Factor = ((1.39328 – 1)/0.005583) × 1.005583 ≈ 71.456.

5. Maturity = 5,000 × 71.456 = ₹3,57,280. Interest = Maturity − Total Deposited = ₹57,280.

What is an RD Calculator?

An RD Calculator (Recurring Deposit Calculator) is a financial tool that estimates the maturity amount and interest earned on a recurring deposit. In India, Post Office Recurring Deposits and bank RDs are popular savings instruments where you deposit a fixed amount every month. This calculator uses the standard compound interest formula (monthly compounding) to give you accurate results.

RD Formula (Compound Interest)

M = P × [((1 + i)ⁿ – 1) / i] × (1 + i)

Where: M = Maturity amount, P = Monthly deposit amount, i = Monthly interest rate (annual rate / 1200 for monthly compounding, or adjusted based on compounding frequency), n = Total number of monthly deposits (months).

For quarterly compounding (Post Office default), the monthly interest rate is adjusted: i = r / 400 for quarterly compounding, and the formula becomes:

M = P × [((1 + r/400)ⁿ – 1) / (r/400)] × (1 + r/400)

where r is the annual interest rate in percentage.

Example Calculation (Post Office RD – Quarterly Compounding)

Example: You deposit ₹2,000 per month in a Post Office RD at 6.5% p.a. for 3 years (36 months). Interest is compounded quarterly.

Step 1: P = 2,000, r = 6.5, n = 36 months.
Step 2: Quarterly rate i = 6.5 / 400 = 0.01625.
Step 3: Number of quarters = 36/3 = 12 (but for RD monthly deposits, we use monthly installments with quarterly rate).
Step 4: Using RD formula: M = 2,000 × [((1.01625)^36 – 1) / 0.01625] × 1.01625.
Step 5: (1.01625)^36 ≈ 1.788. Factor = ((1.788 – 1)/0.01625) × 1.01625 ≈ 49.15. Maturity = 2,000 × 49.15 = ₹98,300. Interest ≈ ₹26,300.

Frequently Asked Questions (FAQ)

1. What is the RD maturity calculation formula?

Maturity of a Recurring Deposit with monthly compounding is calculated using the formula: M = P × [((1 + i)^n – 1) / i] × (1 + i), where P is the monthly deposit, i is the monthly interest rate (annual rate / 1200), and n is the number of months.

2. How is Post Office RD interest calculated?

Post Office RD uses quarterly compounding, but interest is calculated monthly on the balance. The standard formula for RD maturity: M = P × [((1 + r/400)^n – 1) / (r/400)] × (1 + r/400), where r is the annual rate in percentage and n is the number of months.

3. Can I use this calculator for bank RDs?

Yes, this calculator works for both Post Office and bank recurring deposits. Just select the correct compounding frequency from the dropdown.

4. Is the interest earned taxable?

Yes, RD interest is taxable as per your income slab. TDS may apply if interest exceeds ₹40,000 (₹50,000 for senior citizens) in a financial year.

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