Recurring Deposit Calculator
A recurring deposit turns small, regular savings into a lump sum through compound interest. Enter your monthly deposit, interest rate, and time period to see your maturity value, total deposits, and interest earned.
Recurring deposit maturity
See what a fixed monthly deposit grows to with compound interest.
FAQs
How is the maturity value calculated?
The calculator adds up each monthly deposit and applies compound interest at the annual rate you enter, with quarterly compounding — meaning interest is calculated on the balance every three months.
What happens if I skip a month?
A missed deposit means less money in the account and less interest earned, and your maturity value will be lower than the calculator shows. Some banks also charge a small penalty for missed deposits.
How it works
A recurring deposit is one of the simplest ways to save: you commit to depositing a fixed amount every month, and the bank pays interest on the growing balance. Because interest is usually compounded quarterly, deposits made early earn interest for longer, which makes starting sooner more powerful than depositing more later.
Worked example: Depositing $200 a month for 2 years at 6% annual interest gives you about $5,105 at maturity — that's $4,800 of your own money plus roughly $305 earned in interest. Raise the monthly deposit to $300 and the maturity value rises to about $7,658.
The interest rate and time period do most of the heavy lifting. Even a modest monthly amount becomes meaningful over several years, so pick a deposit you can sustain every single month rather than stretching for an amount you might have to skip.
Use this calculator to compare "what-if" scenarios before you commit: a slightly higher rate or one extra year often adds more than a slightly bigger monthly deposit. That's compounding quietly doing the work for you.
Why Small Monthly Deposits Beat Occasional Lump Sums
Most people wait for "enough money" before they start saving, but a recurring deposit proves that consistency matters more than size. A $150 monthly deposit that never misses a beat will outgrow random $1,000 lump sums dropped in twice a year, because every month's deposit starts earning interest immediately.
The habit is the real product. Automating a fixed monthly amount removes the monthly debate about whether you can "afford to save this month" — the money moves before you can talk yourself out of it.
The Right Deposit Size for Your Budget
Pick a monthly amount you can sustain through tight months, not generous ones. A common guideline is to commit about 10–20% of your take-home income to savings, and a recurring deposit is an easy home for part of that — but an amount you keep skipping defeats the purpose.
Start conservative if you're unsure. You can always open a second recurring deposit or increase the amount later; what matters is building the unbroken streak that lets compounding do its work.
Short-Term vs Long-Term: Where Recurring Deposits Shine
Recurring deposits are ideal for goals one to five years out: an emergency fund top-up, a down payment, a wedding, or a planned purchase. The returns are predictable, so you know almost exactly what you'll have and when.
For goals decades away, growth-focused investing has historically offered more — but many savers use both: recurring deposits for the near-term goals they can't afford to miss, and investing for the far-off ones.