DPS Calculator
What a fixed monthly deposit grows into by the end of the term.
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Formula
How the calculation works
A DPS is a schedule, not a single deposit, so the maturity value is the sum of many small balances each left to grow for a different length of time. The first instalment earns for the whole term and the last earns for one month, which is why the total is not simply the deposit times the months.
That is also why the timing matters. The tool treats each instalment as paid at the start of its month, so it earns that month too -- the annuity-due convention. On the worked example that start-of-month timing is worth about 2,449 of the 69,833 gain; paid at month end the maturity would be lower by that much.
Common mistakes
- Multiplying the monthly deposit by the number of months and calling it the maturity value. That is only the money paid in; it leaves out every taka of profit.
- Comparing a DPS rate with an FDR rate as if they were the same thing. One is paid in monthly and the other as a lump sum, so equal rates do not give equal returns.
When to use it
- Use it to see what a monthly commitment actually becomes, or to work backwards from a target and find the deposit needed.
- It is not the right tool for a lump sum; for that use the certificate or FDR calculator, which compound a single amount.
Worked example
Depositing 5,000 a month at 8% for 5 years: contributed 300,000, maturity 369,833.51, gain 69,833.51.
Common questions
Is the deposit at the start or the end of the month?
The calculation assumes the start, so each instalment earns that whole month. Paid at the end it would mature slightly lower.
What if I stop partway?
This is a full-term figure. Closing early usually applies a lower rate, so the result would be smaller.
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