Recurring Deposit Calculator

1. Enter the monthly deposit you plan to pay in.
2. Add the annual interest rate and the tenure in months.
3. Read the maturity value, the total deposited and the interest earned, all updating live.

Each output covers a different part of the plan:

A recurring deposit is a savings product where you commit to paying a fixed amount every month for a set term, and the bank pays interest on the accumulating balance. It suits people who want to save steadily from regular income rather than lock away a single lump sum, and it usually offers a rate close to a fixed deposit.

Each monthly instalment earns interest for the months that remain until maturity, so the first deposit earns the most and the last earns the least. The maturity value is the sum of every instalment plus all the interest they have gathered along the way.

It grows the balance month by month, adding each new deposit and then applying the monthly interest rate.

The monthly rate is i = r / (12 * 100), and after each of the n months the balance becomes (balance + d) * (1 + i). Repeating this for the whole term compounds every instalment to the maturity date.

1. Turn the annual rate into a monthly rate.
2. Each month, add the deposit and apply the monthly interest.
3. After the last month, the balance is the maturity value.

This uses monthly compounding; some banks compound quarterly, which can shift the maturity by a small amount.

Pay 2,000 a month for 24 months at 7 percent. The monthly rate is about 0.583 percent. Each of the 24 instalments compounds for the months left in the term, and together they mature to roughly 51,660.

You deposited 48,000 in all, so about 3,560 is interest. The early deposits do most of the earning, because they have almost two years to grow, while the final deposit earns only one month.

Stretch the same 1,000 a month to 60 months at 8 percent and the maturity is about 73,970 from 60,000 of deposits, showing how a longer term lets compounding build a bigger cushion.

Both are steady, low-risk savings, but they suit different situations.

Because a fixed deposit earns on the full sum from the start, a lump sum invested at once earns more than the same total drip-fed monthly. To grow a lump sum instead, the compound interest calculator is the right tool.

Three inputs drive the outcome, and time is the most powerful.

The Monthly Deposit

A larger instalment raises both the total deposited and the interest, in direct proportion.

The Interest Rate

A higher rate lifts the interest on every instalment, and its effect grows with the length of the term.

The Tenure

A longer term gives early deposits more time to compound, so interest rises faster than the deposits alone.

Compounding Frequency

Monthly compounding earns a little more than quarterly; check which your bank uses.

Planning Regular Savings

See what a monthly habit will grow into, and whether it reaches a target by a certain date.

Comparing Banks

Test the same deposit and term across different rates to see which account pays more at maturity.

Setting a Monthly Amount

Work backwards from a goal to find the monthly deposit and term that reach it.

1. Expecting Fixed-deposit Returns

An RD earns on a growing balance, so the same total drip-fed monthly earns less than a lump sum invested at once.

2. Ignoring Compounding Frequency

Monthly and quarterly compounding give slightly different maturities; match the bank method.

3. Forgetting Tax on Interest

Interest is often taxable, so the amount you keep can be lower than the gross maturity.

4. Missing Instalments

A missed deposit lowers the maturity and may incur a penalty, breaking the steady plan.

5. Confusing Tenure Units

Enter the tenure in months. A three-year plan is 36 months, not 3.

The maturity is exact for monthly compounding at the rate you enter, but a bank may differ slightly.

A recurring deposit is a savings plan where you pay a fixed amount every month for a set term and earn interest on the growing balance, maturing to a larger sum at the end.

Each monthly deposit earns interest for the months left until maturity. This calculator compounds every instalment month by month to give the maturity value.

An RD takes a fixed amount every month, while a fixed deposit takes a single lump sum. An FD earns on the whole amount from day one, so it earns more than the same total saved monthly.

It varies by bank. Many compound quarterly, while this calculator uses monthly compounding, which can make a small difference to the maturity.

In many countries the interest is taxable, and banks may deduct tax at source. The maturity shown here is before any tax.

Usually an RD fixes the monthly amount for the whole term. To model a different amount, run the calculator again with the new figure.

A missed instalment lowers the maturity and often triggers a small penalty. Steady, on-time deposits give the result shown here.

Terms typically range from six months to ten years. Enter the tenure in months, so a three-year plan is 36 months.

No. The calculation runs in your browser, and nothing you enter is sent anywhere unless you Save a result, which stays on this device only.

• Recurring deposit (Wikipedia).
• Compound interest (Maths Is Fun).
• Compound interest (Wikipedia).