Calculate recurring deposit maturity value with monthly deposit amount, interest rate, and tenure for savings planning.
A recurring deposit turns fixed monthly installments into a single maturity payout: you deposit the same amount every month, the balance compounds at the quoted annual rate, and you collect everything at the end of the tenure. This calculator takes the monthly deposit, the interest rate, and the tenure, and returns the maturity value plus the interest earned. The surprise is how small the interest portion is. Interest is not earned on the full maturity sum: the first installment compounds for the whole tenure while the last earns only one month, so the total interest lands near what half the deposited amount would earn.
A concrete input and expected output from the current implementation.
Input
Monthly deposit: 1000 | Annual interest rate: 7% | Tenure: 24 months
Expected output
Maturity value 25,820 after 24 months, made up of 24,000 deposited plus 1,820 interest, using quarterly compounding (the standard convention for Indian recurring deposits).
Each of the 24 installments compounds at 7% / 4 = 1.75% per quarter for the quarters it stays in the account; summing the future values of all installments gives 25,819.8, which rounds to 25,820, and the interest is that minus the 24,000 deposited = 1,820. With monthly compounding the same inputs give about 25,833 instead, so the compounding convention matters.
Each monthly installment earns interest only for the months it sits in the account: the first compounds for the full tenure, the last for a single month. The maturity value sums every installment's future value, so it equals total deposits plus accumulated interest. Quarterly compounding is the standard convention for recurring deposits, applying one quarter of the annual rate per quarter; monthly compounding instead produces a slightly higher figure.
Money arrives gradually, so the average balance over the tenure is roughly half the total deposited, and the interest is close to what half that total would earn. In the worked example, 1,820 interest on 24,000 deposited is 7.6% of deposits over two years, not the 14% that 7% per year for two years suggests. Doubling the tenure more than doubles the interest, since the early installments compound again.
Usually not. Most banks pay a penalized rate on premature closure, commonly one percentage point below the contracted rate and sometimes as low as the savings account rate, so closing early can cut the interest shown here substantially. Some banks also charge for missed installments. Check the account terms, since penalties differ from bank to bank and can change.
Not exactly, in either direction. The quoted 7% is the nominal annual rate; with quarterly compounding the effective annual yield is about 7.19%. But because the balance averages only about half the total deposited, the interest as a share of what you deposited is far below 7% per year. Both effects are already baked into the maturity value the calculator shows.
The example and behavioral notes were checked against the browser implementation. Standards and primary references below define the relevant format, formula, or platform behavior.
Calculate gross, operating, and net profit margins from cost and revenue with breakeven analysis.
Convert between annual salary and hourly rate with adjustments for work hours, overtime, and benefits.
Calculate sales tax amounts, tax-inclusive and tax-exclusive prices for any tax rate or jurisdiction.
Calculate return on investment from initial cost and final value with annualized ROI and comparison tables.
Convert between markup and margin percentages, calculate selling price, and compare pricing strategies.
Convert numeric amounts to written words for invoices, checks, and legal documents in multiple currencies.