Quarterly Annuity Calculator (Recurring Deposit)
About the Quarterly Annuity Calculator (Recurring Deposit)
Calculate the value of regular monthly deposits with interest compounded every quarter, as in a recurring deposit. Enter the monthly instalment, the annual interest rate and the number of quarters.
How it is calculated
A = D × ((1 + i)^n − 1) ÷ (1 − (1 + i)^(−1/3)), with i = annual rate ÷ 4 ÷ 100
Each monthly deposit earns interest from the month it is paid, and interest is added to the balance at the end of each quarter. This is the formula banks in India use for recurring deposits.
Example
Deposits of 1,000 a month for 4 quarters (12 months) at 7% a year grow to about 12,462.
Frequently asked questions
What is a recurring deposit?
A savings account where you deposit the same amount every month for a fixed term and receive interest on it.
Why quarterly compounding?
Many banks add interest every three months; the calculator follows that convention.
Is the interest taxable?
In most countries interest on deposits is taxable income; check the rules where you live.