How this calculation works
Estimate a regular monthly interest payout from the deposited principal. Unlike a cumulative deposit, the interest shown here is paid out rather than added back to the principal. The maturity-principal result is therefore separate from the interest collected during the term.
Worked example
This example uses illustrative inputs. Your current result is shown above.
For ₹9,00,000, an entered 7.4% annual rate and 5 years, monthly income = ₹9,00,000 × 0.074 ÷ 12 = ₹5,550. Total interest is ₹3,33,000 across 60 payments; the separately returned principal is ₹9,00,000.
Assumptions and limits
- The principal and entered annual rate stay constant, and each monthly payout is taken out.
- The duration input is an arithmetic horizon; it does not establish eligibility for a different scheme term.
- Account limits, tax, premature-closure deductions and missed or irregular payment dates are not checked.
Questions people ask
Why is principal at maturity unchanged?
The interest is modelled as a cash payout, not as money reinvested in the account. Counting it in both the payouts and maturity principal would double count it.
What if I reinvest every monthly payout?
That is a second investment with its own rate and timing. Model those payments separately instead of assuming this scheme compounds them automatically.