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 30 years):
- Total Deposited = ₹18,00,000
- Maturity Value = ₹61,35,437.47
- Interest Earned = ₹43,35,437.47
✅ This accounts for monthly compounding (not simple interest).