Recurring Deposit Calculator
With a fixed monthly deposit into a recurring deposit, compounded monthly, see the maturity value, total deposited and interest earned — good for disciplined saving.
Input Data
Results
At a glance:A recurring deposit adds a fixed sum each month and compounds monthly. Maturity value = monthly deposit × ((1 + r/1200)^(12t) − 1) ÷ (r/1200); total invested = monthly deposit × 12 × t; interest = maturity value − total invested.
Formula
Monthly rate = annual rate% ÷ 1200.
Maturity value = monthly deposit × ((1 + monthly rate)^(12t) − 1) ÷ monthly rate.
Interest earned = maturity value − total deposited.
$$FV = PMT \times \dfrac{(1 + i)^n - 1}{i} \times (1 + i),\quad i = \dfrac{annual\%}{12},\; n = years \times 12$$$$Invested = PMT \times n,\quad Interest = FV - Invested$$How to Use
- Enter the monthly deposit.
- Enter the annual rate and the years.
- Read the maturity value, total deposited and interest.
FAQ
What is a recurring deposit and how is it different from a fixed deposit?
A recurring deposit (RD) means depositing a fixed amount every month (or period) and receiving the lump sum with interest at maturity. A fixed deposit (FD) is a one-time lump-sum deposit. RD suits those without a lump sum who want to save regularly; FD suits those who already have capital and want it to compound at once.
Does the monthly deposit amount have to be the same?
In a standard RD, each instalment is the same, so the formula applies. If amounts vary, the maturity value must be summed instalment by instalment with different terms. This calculator assumes a fixed monthly amount.
What happens if I miss a deposit or withdraw early?
Missing a deposit usually incurs a penalty or interest reduction, and early withdrawal may forfeit part of the interest or apply a lower rate. Terms vary by institution — check the agreement, as this calculator assumes all deposits are made on time and held to maturity.
How do I choose between an RD and a lump-sum investment?
If you have a steady salary but no lump sum, an RD is a low-threshold way to build savings through monthly discipline; if you already hold capital, a lump-sum compounded deposit or fund may grow faster. Compare by maturity value and liquidity needs.
Is the interest taxable?
For individuals in Hong Kong, deposit interest is generally not subject to profits tax, but specific situations (e.g. business accounts, non-residents) differ. Treat the result here as pre-tax and consult a professional for tax treatment.
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References
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.