Calculate the maturity value of a monthly recurring deposit.
Each monthly installment earns interest for a different number of remaining months, so the total uses the future-value-of-annuity formula: M = R × [((1+i)^n − 1) / i] × (1+i), where R is the monthly deposit, i is the monthly rate of interest, and n is the number of months.
Each monthly deposit compounds for a different number of remaining months, so the total is a future-value-of-annuity calculation: M = R × [((1+i)^n − 1) / i] × (1+i), where R is the monthly deposit, i is the monthly rate, and n is the number of months.
This calculator shows gross interest before tax. Interest earned on a recurring deposit is generally taxable as income, and banks may deduct TDS above a threshold.
Both involve fixed periodic contributions, but an RD earns a fixed bank interest rate with guaranteed returns, while a SIP invests in mutual funds whose returns fluctuate with the market.