How this calculation works
Estimate the future balance from equal monthly recurring deposits. Earlier deposits earn interest for longer, so multiplying the total deposited by the full-term interest rate overstates growth. This model credits a nominal monthly rate and puts each instalment in at the beginning of its month; use it as a projection rather than an exact bank maturity quotation.
Worked example
This example uses illustrative inputs. Your current result is shown above.
With ₹1,000 deposited at the start of each month for 12 months at 12% nominal annual interest, i = 1%. Maturity = ₹1,000 × [(1.01¹²−1)/0.01] × 1.01 = ₹12,809.33. Deposits total ₹12,000 and interest is ₹809.33.
Assumptions and limits
- Every monthly deposit arrives on time at the beginning of its modelled month.
- Interest compounds monthly at the annual rate divided by 12; this is not a bank-specific quarterly RD convention.
- Late-payment charges, partial periods, TDS and tax are excluded.
Questions people ask
Why does my bank’s RD calculator show a different maturity?
Many RD products use quarterly compounding and specific rules for each deposit date. This calculator uses monthly compounding and beginning-of-month deposits; those timing choices can change the result.
Does every instalment earn a full year’s interest?
No. In a 12-month plan the first instalment receives 12 monthly growth periods and the last receives one.