# Recurring deposit calculator

# Recurring deposit calculator

A recurring deposit calculator is a tool that calculates the maturity value and interest earned on a recurring deposit account. A recurring deposit is a type of savings account in which a person deposits a fixed amount of money at regular intervals, usually monthly, for a predetermined period of time. The interest rate on the account is fixed for the duration of the deposit.

**Here are the steps to use a recurring deposit calculator:**

- Enter the monthly deposit amount, the duration of the deposit in months, and the annual interest rate into the calculator.
- Click the “Calculate” button to find the maturity value and interest earned.

Here is the formula for calculating the maturity value of a recurring deposit:

**M = P * [((1 + r/n)^(n*t) – 1) / (r/n)]**

where M is the maturity value, P is the monthly deposit amount, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the duration of the deposit in years.

Let’s say we have a recurring deposit account with a monthly deposit of $100, an annual interest rate of 5%, and a duration of 2 years. To use a recurring deposit calculator, we would follow these steps:

- Enter the values for the monthly deposit, duration in months, and annual interest rate into the calculator: P = 100, t = 2, and r = 0.05.
- Choose the frequency of interest compounding. In this example, let’s assume interest is compounded monthly, so n = 12.
- Click the “Calculate” button to find the maturity value and interest earned.

**The recurring deposit calculator would give us the following results:**

**Maturity value:**M = P * [((1 + r/n)^(n*t) – 1) / (r/n)] = 100 * [((1 + 0.05/12)^(12*2) – 1) / (0.05/12)] = $2,493.77 (rounded to two decimal places).**Interest earned:**Interest = M – (P * t * 12) = $493.77.

Therefore, the maturity value of the recurring deposit is $2,493.77 and the interest earned is $493.77.