Post Office RD Calculator

Planning to invest a fixed sum every month? The Post Office Recurring Deposit (RD) scheme offers guaranteed returns with zero market risk. Use this Post Office RD Calculator to instantly see the maturity value of your monthly savings – no sign‑up, no spreadsheet.

How the calculator works

Enter your monthly contribution, the tenure (usually 5 years), and the current interest rate. The calculator compounds the interest quarterly – exactly as India Post does – and shows the total maturity amount and the interest earned. The result gives you a clear picture of exactly how much you will accumulate.

What is Post Office Recurring Deposit?

A Post Office RD is a government‑backed small‑savings scheme that lets you deposit a fixed amount every month for 5 years. It is ideal for salaried individuals, homemakers, or anyone who wants to build a lump sum with disciplined monthly savings. The interest rate is revised every quarter by the Ministry of Finance. As of April–June 2026, the rate is 6.8% per annum, compounded quarterly.

The minimum monthly deposit is ₹100, with no upper limit. You can open multiple accounts. The scheme also offers nomination and loan facilities after 12 monthly installments.

How is Post Office RD maturity calculated?

The maturity amount uses the standard formula for quarterly compounding with monthly contributions:

M = R × [ (1 + i/4)^4t – 1 ] ÷ ( 1 – (1 + i/4)^)-1/3

Where:
R = Monthly deposit
i = Annual interest rate (decimal)
t = Tenure in years

Because deposits are made monthly but interest is credited quarterly, the effective calculation adjusts each monthly contribution to account for the number of quarters it stays invested. The calculator above applies this logic automatically, so you see the precise maturity value.

Example calculation

Suppose you deposit ₹5,000 every month for 5 years at 6.8%. The maturity amount comes to approximately ₹3,57,950. Of this, ₹3,00,000 is your principal and ₹57,950 is the interest earned. Extending the tenure to 10 years (by renewing the account) nearly doubles the interest component because of the longer compounding period.

What is the current Post Office RD interest rate in 2026?

For the first quarter of FY 2026–27 (1 April 2026 to 30 June 2026), the interest rate on 5‑year Post Office Recurring Deposit accounts is 6.8% per annum. This rate is linked to the yields on government securities and is reviewed every three months. Historically, the rate has ranged from 5.8% to 7.2% in the last five years. You can always check the latest notification on the India Post website.

Interest is calculated for each calendar month on the balance lying between the 10th and the last day of the month at the end of each quarter (31 March, 30 June, 30 September, 31 December). If you deposit before the 10th, your money earns interest for that full month.

Why use a Post Office RD calculator?

• Instant comparison – Test different monthly amounts or longer tenures to see how much you can accumulate.
• Realistic planning – See exactly how quarterly compounding boosts returns compared to simple interest or annual compounding.
• No surprises – Know the maturity value beforehand so you can align with financial goals like education fees, marriage expenses, or a vacation.
• Tax estimation – Interest earned is taxable; the calculator helps you estimate the taxable portion without applying any deductions (only your slab rate after that).

Interest earned on Post Office RD is fully taxable. Consult a tax advisor to understand tax-saving options and plan withdrawals accordingly.

How to maximize your Post Office RD returns

• Deposit before the 10th of each month – A deposit after the 10th earns interest only from the following month.
• Keep the account active for the full 5 years – Premature closure attracts a 1% penalty on the interest rate.
• Renew for another 5 years – The second 5‑year term again compounds interest quarterly, significantly increasing the final amount.
• Consider multiple accounts – For large monthly amounts, splitting into multiple RDs can help with liquidity if needed.

The Post Office RD remains a safe, predictable instrument. A proper calculation before you commit ensures that your savings target is not based on guesswork but on exact numbers.