About this calculator
A recurring deposit lets you save a fixed amount each month for a fixed time. Interest is added every quarter.
How it is calculated
- M = R × ((1 + i)^n − 1) ÷ (1 − (1 + i)^(−1/3)), where R is the monthly deposit, i = yearly rate ÷ 4 and n = months ÷ 3.
Assumptions. Quarterly compounding and a deposit every month without a miss. Missing a deposit usually brings a penalty.
Questions
RD or SIP?
An RD has a known rate and low risk. A SIP in equity funds can earn more or less. They suit different goals.
Is this exact?
It is a standard formula using the numbers you enter. Your bank, fund or lender may round differently or use different dates, so treat it as a close estimate and check the final figure with them.