Formula:
M = P × [(1 + r)n − 1] ÷ [1 − (1 + r)-1]
Where:
P = Monthly Deposit
r = Monthly Interest Rate (Annual ÷ 12 ÷ 100)
n = Number of Months (Tenure × 12)
Example (₹5000 @ 7% for 20 years):
- Total Deposited = ₹12,00,000
- Maturity Value = ₹26,78,276.21
- Interest Earned = ₹14,78,276.21
✅ This accounts for monthly compounding (not simple interest).