Recurring Deposit Calculator
Calculate the maturity amount, total deposits, and interest earned for a recurring deposit.
$
% p.a.
Years
Result
Maturity Amount
$21,603,158
Total Deposits
$300,000
Interest Earned
$21,303,158
How to use the recurring deposit calculator?
Enter your planned monthly deposit, the annual interest rate offered by your bank, and the tenure of the deposit in months or years. The calculator instantly shows the maturity amount, total deposits made, and interest earned.
Formula
M = P × n × (1 + r) × ((1 + r)n − 1) / r
P = monthly deposit, r = monthly interest rate, n = total months
P = monthly deposit, r = monthly interest rate, n = total months
Example
Depositing $5,000 every month for 5 years at 7% annual interest yields a maturity amount of roughly $356,555. You will have deposited $300,000 in total, earning approximately $56,555 in interest.
FAQs
- Is this interest compounded quarterly like real banks? This calculator uses a simplified monthly compounding formula. Actual bank RD products may compound quarterly, slightly increasing the maturity amount.
- What if I miss a monthly payment? The formula assumes every monthly deposit is made on time. Late or missed payments reduce the actual maturity amount.
- Are taxes deducted? The calculator shows pre-tax amounts. Banks may deduct TDS on interest earned above the annual exemption limit.
Common Use Cases
- Comparing returns across different banks or RD schemes before committing.
- Planning a monthly savings goal for a future expense like a wedding or education.
- Understanding the difference between total deposits and the final maturity amount.