diff --git a/app/controllers/recurring_transactions_controller.rb b/app/controllers/recurring_transactions_controller.rb
new file mode 100644
index 000000000..d6b6691d1
--- /dev/null
+++ b/app/controllers/recurring_transactions_controller.rb
@@ -0,0 +1,58 @@
+class RecurringTransactionsController < ApplicationController
+  layout "settings"
+
+  def index
+    @recurring_transactions = Current.family.recurring_transactions
+                                    .includes(:merchant)
+                                    .order(status: :asc, next_expected_date: :asc)
+  end
+
+  def identify
+    count = RecurringTransaction.identify_patterns_for(Current.family)
+
+    respond_to do |format|
+      format.html do
+        flash[:notice] = t("recurring_transactions.identified", count: count)
+        redirect_to recurring_transactions_path
+      end
+    end
+  end
+
+  def cleanup
+    count = RecurringTransaction.cleanup_stale_for(Current.family)
+
+    respond_to do |format|
+      format.html do
+        flash[:notice] = t("recurring_transactions.cleaned_up", count: count)
+        redirect_to recurring_transactions_path
+      end
+    end
+  end
+
+  def toggle_status
+    @recurring_transaction = Current.family.recurring_transactions.find(params[:id])
+
+    if @recurring_transaction.active?
+      @recurring_transaction.mark_inactive!
+      message = t("recurring_transactions.marked_inactive")
+    else
+      @recurring_transaction.mark_active!
+      message = t("recurring_transactions.marked_active")
+    end
+
+    respond_to do |format|
+      format.html do
+        flash[:notice] = message
+        redirect_to recurring_transactions_path
+      end
+    end
+  end
+
+  def destroy
+    @recurring_transaction = Current.family.recurring_transactions.find(params[:id])
+    @recurring_transaction.destroy!
+
+    flash[:notice] = t("recurring_transactions.deleted")
+    redirect_to recurring_transactions_path
+  end
+end
diff --git a/app/controllers/transactions_controller.rb b/app/controllers/transactions_controller.rb
index 707fa5d4f..2036bd168 100644
--- a/app/controllers/transactions_controller.rb
+++ b/app/controllers/transactions_controller.rb
@@ -22,6 +22,14 @@ class TransactionsController < ApplicationController
                        )
 
     @pagy, @transactions = pagy(base_scope, limit: per_page)
+
+    # Load projected recurring transactions for next month
+    @projected_recurring = Current.family.recurring_transactions
+                                  .active
+                                  .where("next_expected_date <= ? AND next_expected_date >= ?",
+                                         1.month.from_now.to_date,
+                                         Date.current)
+                                  .includes(:merchant)
   end
 
   def clear_filter
diff --git a/app/models/family.rb b/app/models/family.rb
index 2380a37df..b618f3785 100644
--- a/app/models/family.rb
+++ b/app/models/family.rb
@@ -35,6 +35,7 @@ class Family < ApplicationRecord
   has_many :budget_categories, through: :budgets
 
   has_many :llm_usages, dependent: :destroy
+  has_many :recurring_transactions, dependent: :destroy
 
   validates :locale, inclusion: { in: I18n.available_locales.map(&:to_s) }
   validates :date_format, inclusion: { in: DATE_FORMATS.map(&:last) }
diff --git a/app/models/family/sync_complete_event.rb b/app/models/family/sync_complete_event.rb
index 4fd0e00f5..c00226072 100644
--- a/app/models/family/sync_complete_event.rb
+++ b/app/models/family/sync_complete_event.rb
@@ -28,5 +28,12 @@ class Family::SyncCompleteEvent
     rescue => e
       Rails.logger.error("Family::SyncCompleteEvent net_worth_chart broadcast failed: #{e.message}\n#{e.backtrace&.join("\n")}")
     end
+
+    # Identify recurring transaction patterns after sync
+    begin
+      RecurringTransaction.identify_patterns_for(family)
+    rescue => e
+      Rails.logger.error("Family::SyncCompleteEvent recurring transaction identification failed: #{e.message}\n#{e.backtrace&.join("\n")}")
+    end
   end
 end
diff --git a/app/models/merchant.rb b/app/models/merchant.rb
index 4a4257bc2..f3a7bc95c 100644
--- a/app/models/merchant.rb
+++ b/app/models/merchant.rb
@@ -2,6 +2,7 @@ class Merchant < ApplicationRecord
   TYPES = %w[FamilyMerchant ProviderMerchant].freeze
 
   has_many :transactions, dependent: :nullify
+  has_many :recurring_transactions, dependent: :destroy
 
   validates :name, presence: true
   validates :type, inclusion: { in: TYPES }
diff --git a/app/models/recurring_transaction.rb b/app/models/recurring_transaction.rb
new file mode 100644
index 000000000..14cb68961
--- /dev/null
+++ b/app/models/recurring_transaction.rb
@@ -0,0 +1,102 @@
+class RecurringTransaction < ApplicationRecord
+  include Monetizable
+
+  belongs_to :family
+  belongs_to :merchant
+
+  monetize :amount
+
+  enum :status, { active: "active", inactive: "inactive" }
+
+  validates :amount, presence: true
+  validates :currency, presence: true
+  validates :expected_day_of_month, presence: true, numericality: { greater_than: 0, less_than_or_equal_to: 31 }
+
+  scope :for_family, ->(family) { where(family: family) }
+  scope :expected_soon, -> { active.where("next_expected_date <= ?", 1.month.from_now) }
+
+  # Class methods for identification and cleanup
+  def self.identify_patterns_for(family)
+    Identifier.new(family).identify_recurring_patterns
+  end
+
+  def self.cleanup_stale_for(family)
+    Cleaner.new(family).cleanup_stale_transactions
+  end
+
+  # Find matching transactions for this recurring pattern
+  def matching_transactions
+    entries = family.entries
+      .where(entryable_type: "Transaction")
+      .where(currency: currency)
+      .where("entries.amount = ?", amount)
+      .where("EXTRACT(DAY FROM entries.date) BETWEEN ? AND ?",
+             [ expected_day_of_month - 2, 1 ].max,
+             [ expected_day_of_month + 2, 31 ].min)
+      .order(date: :desc)
+
+    # Filter by merchant through the entryable (Transaction)
+    entries.select do |entry|
+      entry.entryable.is_a?(Transaction) && entry.entryable.merchant_id == merchant_id
+    end
+  end
+
+  # Check if this recurring transaction should be marked inactive
+  def should_be_inactive?
+    return false if last_occurrence_date.nil?
+    last_occurrence_date < 2.months.ago
+  end
+
+  # Mark as inactive
+  def mark_inactive!
+    update!(status: "inactive")
+  end
+
+  # Mark as active
+  def mark_active!
+    update!(status: "active")
+  end
+
+  # Update based on a new transaction occurrence
+  def record_occurrence!(transaction_date)
+    self.last_occurrence_date = transaction_date
+    self.next_expected_date = calculate_next_expected_date(transaction_date)
+    self.occurrence_count += 1
+    self.status = "active"
+    save!
+  end
+
+  # Calculate the next expected date based on the last occurrence
+  def calculate_next_expected_date(from_date = last_occurrence_date)
+    # Start with next month
+    next_month = from_date.next_month
+
+    # Try to use the expected day of month
+    begin
+      Date.new(next_month.year, next_month.month, expected_day_of_month)
+    rescue ArgumentError
+      # If day doesn't exist in month (e.g., 31st in February), use last day of month
+      next_month.end_of_month
+    end
+  end
+
+  # Get the projected transaction for display
+  def projected_entry
+    return nil unless active?
+    return nil unless next_expected_date.future?
+
+    OpenStruct.new(
+      date: next_expected_date,
+      amount: amount,
+      currency: currency,
+      merchant: merchant,
+      recurring: true,
+      projected: true
+    )
+  end
+
+  private
+    def monetizable_currency
+      currency
+    end
+end
diff --git a/app/models/recurring_transaction/cleaner.rb b/app/models/recurring_transaction/cleaner.rb
new file mode 100644
index 000000000..ea7091051
--- /dev/null
+++ b/app/models/recurring_transaction/cleaner.rb
@@ -0,0 +1,41 @@
+class RecurringTransaction
+  class Cleaner
+    attr_reader :family
+
+    def initialize(family)
+      @family = family
+    end
+
+    # Mark recurring transactions as inactive if they haven't occurred in 2+ months
+    def cleanup_stale_transactions
+      two_months_ago = 2.months.ago.to_date
+
+      stale_transactions = family.recurring_transactions
+        .active
+        .where("last_occurrence_date < ?", two_months_ago)
+
+      stale_count = 0
+      stale_transactions.find_each do |recurring_transaction|
+        # Double-check if there are any recent matching transactions
+        recent_matches = recurring_transaction.matching_transactions.select { |entry| entry.date >= two_months_ago }
+
+        if recent_matches.empty?
+          recurring_transaction.mark_inactive!
+          stale_count += 1
+        end
+      end
+
+      stale_count
+    end
+
+    # Remove inactive recurring transactions that have been inactive for 6+ months
+    def remove_old_inactive_transactions
+      six_months_ago = 6.months.ago
+
+      family.recurring_transactions
+        .inactive
+        .where("updated_at < ?", six_months_ago)
+        .destroy_all
+    end
+  end
+end
diff --git a/app/models/recurring_transaction/identifier.rb b/app/models/recurring_transaction/identifier.rb
new file mode 100644
index 000000000..7098b39f3
--- /dev/null
+++ b/app/models/recurring_transaction/identifier.rb
@@ -0,0 +1,159 @@
+class RecurringTransaction
+  class Identifier
+    attr_reader :family
+
+    def initialize(family)
+      @family = family
+    end
+
+    # Identify and create/update recurring transactions for the family
+    def identify_recurring_patterns
+      three_months_ago = 3.months.ago.to_date
+
+      # Get all transactions from the last 3 months
+      entries_with_transactions = family.entries
+        .where(entryable_type: "Transaction")
+        .where("entries.date >= ?", three_months_ago)
+        .includes(:entryable)
+        .to_a
+
+      # Filter to only those with merchants and group by merchant and amount (preserve sign)
+      grouped_transactions = entries_with_transactions
+        .select { |entry| entry.entryable.is_a?(Transaction) && entry.entryable.merchant_id.present? }
+        .group_by { |entry| [ entry.entryable.merchant_id, entry.amount.round(2), entry.currency ] }
+
+      recurring_patterns = []
+
+      grouped_transactions.each do |(merchant_id, amount, currency), entries|
+        next if entries.size < 3  # Must have at least 3 occurrences
+
+        # Check if the last occurrence was within the last 45 days
+        last_occurrence = entries.max_by(&:date)
+        next if last_occurrence.date < 45.days.ago.to_date
+
+        # Check if transactions occur on similar days (within 5 days of each other)
+        days_of_month = entries.map { |e| e.date.day }.sort
+
+        # Calculate if days cluster together (standard deviation check)
+        if days_cluster_together?(days_of_month)
+          expected_day = calculate_expected_day(days_of_month)
+
+          recurring_patterns << {
+            merchant_id: merchant_id,
+            amount: amount,
+            currency: currency,
+            expected_day_of_month: expected_day,
+            last_occurrence_date: last_occurrence.date,
+            occurrence_count: entries.size,
+            entries: entries
+          }
+        end
+      end
+
+      # Create or update RecurringTransaction records
+      recurring_patterns.each do |pattern|
+        recurring_transaction = family.recurring_transactions.find_or_initialize_by(
+          merchant_id: pattern[:merchant_id],
+          amount: pattern[:amount],
+          currency: pattern[:currency]
+        )
+
+        recurring_transaction.assign_attributes(
+          expected_day_of_month: pattern[:expected_day_of_month],
+          last_occurrence_date: pattern[:last_occurrence_date],
+          next_expected_date: calculate_next_expected_date(pattern[:last_occurrence_date], pattern[:expected_day_of_month]),
+          occurrence_count: pattern[:occurrence_count],
+          status: "active"
+        )
+
+        recurring_transaction.save!
+      end
+
+      recurring_patterns.size
+    end
+
+    private
+      # Check if days cluster together (within ~5 days variance)
+      # Uses circular distance to handle month-boundary wrapping (e.g., 28, 29, 30, 31, 1, 2)
+      def days_cluster_together?(days)
+        return false if days.empty?
+
+        # Calculate median as reference point
+        median = calculate_expected_day(days)
+
+        # Calculate circular distances from median
+        circular_distances = days.map { |day| circular_distance(day, median) }
+
+        # Calculate standard deviation of circular distances
+        mean_distance = circular_distances.sum.to_f / circular_distances.size
+        variance = circular_distances.map { |dist| (dist - mean_distance)**2 }.sum / circular_distances.size
+        std_dev = Math.sqrt(variance)
+
+        # Allow up to 5 days standard deviation
+        std_dev <= 5
+      end
+
+      # Calculate circular distance between two days on a 31-day circle
+      # Examples:
+      #   circular_distance(1, 31) = 2  (wraps around: 31 -> 1 is 1 day forward)
+      #   circular_distance(28, 2) = 5  (wraps: 28, 29, 30, 31, 1, 2)
+      def circular_distance(day1, day2)
+        linear_distance = (day1 - day2).abs
+        wrap_distance = 31 - linear_distance
+        [ linear_distance, wrap_distance ].min
+      end
+
+      # Calculate the expected day based on the most common day
+      # Uses circular rotation to handle month-wrapping sequences (e.g., [29, 30, 31, 1, 2])
+      def calculate_expected_day(days)
+        return days.first if days.size == 1
+
+        # Convert to 0-indexed (0-30 instead of 1-31) for modular arithmetic
+        days_0 = days.map { |d| d - 1 }
+
+        # Find the rotation (pivot) that minimizes span, making the cluster contiguous
+        # This handles month-wrapping sequences like [29, 30, 31, 1, 2]
+        best_pivot = 0
+        min_span = Float::INFINITY
+
+        (0..30).each do |pivot|
+          rotated = days_0.map { |d| (d - pivot) % 31 }
+          span = rotated.max - rotated.min
+
+          if span < min_span
+            min_span = span
+            best_pivot = pivot
+          end
+        end
+
+        # Rotate days using best pivot to create contiguous array
+        rotated_days = days_0.map { |d| (d - best_pivot) % 31 }.sort
+
+        # Calculate median on rotated, contiguous array
+        mid = rotated_days.size / 2
+        rotated_median = if rotated_days.size.odd?
+          rotated_days[mid]
+        else
+          # For even count, average and round
+          ((rotated_days[mid - 1] + rotated_days[mid]) / 2.0).round
+        end
+
+        # Map median back to original day space (unrotate) and convert to 1-indexed
+        original_day = (rotated_median + best_pivot) % 31 + 1
+
+        original_day
+      end
+
+      # Calculate next expected date
+      def calculate_next_expected_date(last_date, expected_day)
+        next_month = last_date.next_month
+
+        begin
+          Date.new(next_month.year, next_month.month, expected_day)
+        rescue ArgumentError
+          # If day doesn't exist in month, use last day of month
+          next_month.end_of_month
+        end
+      end
+  end
+end
diff --git a/app/views/family_exports/_list.html.erb b/app/views/family_exports/_list.html.erb
index 339c0c039..e73889dfb 100644
--- a/app/views/family_exports/_list.html.erb
+++ b/app/views/family_exports/_list.html.erb
@@ -38,13 +38,13 @@
               <%= button_to family_export_path(export),
                   method: :delete,
                   class: "flex items-center gap-2 text-destructive hover:text-destructive-hover",
-                  data: { 
+                  data: {
                     turbo_confirm: "Are you sure you want to delete this export? This action cannot be undone.",
                     turbo_frame: "_top"
                   } do %>
                 <%= icon "trash-2", class: "w-5 h-5 text-destructive" %>
               <% end %>
-              
+
               <%= link_to download_family_export_path(export),
                   class: "flex items-center gap-2 text-primary hover:text-primary-hover",
                   data: { turbo_frame: "_top" } do %>
@@ -56,11 +56,11 @@
               <div class="flex items-center gap-2 text-destructive">
                 <%= icon "alert-circle", class: "w-4 h-4" %>
               </div>
-              
+
               <%= button_to family_export_path(export),
                   method: :delete,
                   class: "flex items-center gap-2 text-destructive hover:text-destructive-hover",
-                  data: { 
+                  data: {
                     turbo_confirm: "Are you sure you want to delete this failed export?",
                     turbo_frame: "_top"
                   } do %>
diff --git a/app/views/imports/_import.html.erb b/app/views/imports/_import.html.erb
index 026e52fb8..bfb411da9 100644
--- a/app/views/imports/_import.html.erb
+++ b/app/views/imports/_import.html.erb
@@ -38,25 +38,21 @@
 
   <div class="flex items-center gap-2">
 
-
     <% if import.complete? || import.revert_failed? %>
       <%= button_to revert_import_path(import),
           method: :put,
           class: "flex items-center gap-2 text-orange-500 hover:text-orange-600",
-          data: { 
+          data: {
             turbo_confirm: "This will delete transactions that were imported, but you will still be able to review and re-import your data at any time."
           } do %>
         <%= icon "rotate-ccw", class: "w-5 h-5 text-destructive" %>
       <% end %>
 
-
-
-
     <% else %>
       <%= button_to import_path(import),
           method: :delete,
           class: "flex items-center gap-2 text-destructive hover:text-destructive-hover",
-          data: { 
+          data: {
             turbo_confirm: CustomConfirm.for_resource_deletion("import")
           } do %>
         <%= icon "trash-2", class: "w-5 h-5 text-destructive" %>
diff --git a/app/views/imports/index.html.erb b/app/views/imports/index.html.erb
index 321d5f809..8e01454bd 100644
--- a/app/views/imports/index.html.erb
+++ b/app/views/imports/index.html.erb
@@ -7,7 +7,7 @@
         <%= render partial: "imports/import", collection: @imports.ordered %>
       </div>
     <% end %>
-    
+
     <%= link_to new_import_path,
         class: "bg-container-inset flex items-center justify-center gap-2 text-secondary mt-1 hover:bg-container-inset-hover rounded-lg px-4 py-2 w-full text-center",
         data: { turbo_frame: :modal } do %>
@@ -27,7 +27,7 @@
           </div>
         <% end %>
       </div>
-      
+
       <%= link_to new_family_export_path,
           class: "bg-container-inset flex items-center justify-center gap-2 text-secondary mt-1 hover:bg-container-inset-hover rounded-lg px-4 py-2 w-full text-center",
           data: { turbo_frame: :modal } do %>
diff --git a/app/views/layouts/_dark_mode_check.html.erb b/app/views/layouts/_dark_mode_check.html.erb
index 0a0ccac2c..949891f2b 100644
--- a/app/views/layouts/_dark_mode_check.html.erb
+++ b/app/views/layouts/_dark_mode_check.html.erb
@@ -2,4 +2,4 @@
   if (localStorage.theme === 'dark' || (!('theme' in localStorage) && window.matchMedia('(prefers-color-scheme: dark)').matches)) {
     document.documentElement.setAttribute("data-theme", "dark");
   }
-</script>
\ No newline at end of file
+</script>
diff --git a/app/views/pages/dashboard/_outflows_donut.html.erb b/app/views/pages/dashboard/_outflows_donut.html.erb
index cefd472f7..01c52f34c 100644
--- a/app/views/pages/dashboard/_outflows_donut.html.erb
+++ b/app/views/pages/dashboard/_outflows_donut.html.erb
@@ -37,7 +37,7 @@
               </div>
 
               <div class="text-3xl font-medium text-primary">
-                <%= outflows_data[:currency_symbol] %><%= number_with_delimiter(outflows_data[:total], delimiter: ',') %>
+                <%= outflows_data[:currency_symbol] %><%= number_with_delimiter(outflows_data[:total], delimiter: ",") %>
               </div>
             </div>
 
@@ -47,7 +47,7 @@
                   <p class="text-sm text-secondary"><%= category[:name] %></p>
 
                   <p class="text-3xl font-medium text-primary">
-                    <%= outflows_data[:currency_symbol] %><%= number_with_delimiter(category[:amount], delimiter: ',') %>
+                    <%= outflows_data[:currency_symbol] %><%= number_with_delimiter(category[:amount], delimiter: ",") %>
                   </p>
 
                   <p class="text-sm text-secondary"><%= category[:percentage] %>%</p>
@@ -75,7 +75,7 @@
                 <span class="text-sm font-medium text-primary truncate"><%= category[:name] %></span>
               </div>
               <div class="flex items-center gap-4 flex-shrink-0">
-                <span class="text-sm font-medium text-primary whitespace-nowrap"><%= outflows_data[:currency_symbol] %><%= number_with_delimiter(category[:amount], delimiter: ',') %></span>
+                <span class="text-sm font-medium text-primary whitespace-nowrap"><%= outflows_data[:currency_symbol] %><%= number_with_delimiter(category[:amount], delimiter: ",") %></span>
                 <span class="text-sm text-secondary whitespace-nowrap"><%= category[:percentage] %>%</span>
               </div>
             <% end %>
diff --git a/app/views/recurring_transactions/_projected_transaction.html.erb b/app/views/recurring_transactions/_projected_transaction.html.erb
new file mode 100644
index 000000000..44ed7d185
--- /dev/null
+++ b/app/views/recurring_transactions/_projected_transaction.html.erb
@@ -0,0 +1,50 @@
+<%# locals: (recurring_transaction:) %>
+
+<div class="grid grid-cols-12 items-center text-subdued text-sm font-medium p-4 lg:p-4 bg-container-inset rounded">
+  <div class="pr-4 lg:pr-10 flex items-center gap-3 lg:gap-4 col-span-8">
+    <div class="max-w-full">
+      <%= content_tag :div, class: ["flex items-center gap-2"] do %>
+        <% if recurring_transaction.merchant&.logo_url.present? %>
+          <%= image_tag recurring_transaction.merchant.logo_url,
+              class: "w-6 h-6 rounded-full",
+              loading: "lazy" %>
+        <% else %>
+          <%= render DS::FilledIcon.new(
+            variant: :text,
+            text: recurring_transaction.merchant.name,
+            size: "sm",
+            rounded: true
+          ) %>
+        <% end %>
+
+        <div class="truncate">
+          <div class="space-y-0.5">
+            <div class="flex items-center gap-2 min-w-0">
+              <div class="truncate flex-shrink">
+                <%= recurring_transaction.merchant.name %>
+              </div>
+
+              <div class="flex items-center gap-1 flex-shrink-0">
+                <span class="inline-flex items-center px-2 py-0.5 rounded text-xs font-medium bg-blue-tint-10 text-link">
+                  <%= t("recurring_transactions.projected") %>
+                </span>
+              </div>
+            </div>
+
+            <div class="text-secondary text-xs font-normal">
+              <%= t("recurring_transactions.expected_on", date: l(recurring_transaction.next_expected_date, format: :short)) %>
+            </div>
+          </div>
+        </div>
+      <% end %>
+    </div>
+  </div>
+
+  <div class="hidden lg:flex items-center gap-1 col-span-2">
+    <span class="text-xs text-secondary"><%= t("recurring_transactions.recurring") %></span>
+  </div>
+
+  <div class="col-span-2 ml-auto text-right">
+    <%= content_tag :p, format_money(-recurring_transaction.amount_money), class: ["font-medium", recurring_transaction.amount.negative? ? "text-success" : "text-subdued"] %>
+  </div>
+</div>
diff --git a/app/views/recurring_transactions/index.html.erb b/app/views/recurring_transactions/index.html.erb
new file mode 100644
index 000000000..5f8958f36
--- /dev/null
+++ b/app/views/recurring_transactions/index.html.erb
@@ -0,0 +1,140 @@
+<div class="space-y-4 pb-20 flex flex-col">
+  <header class="flex justify-between items-center text-primary font-medium">
+    <h1 class="text-xl"><%= t("recurring_transactions.title") %></h1>
+    <div class="flex items-center gap-2">
+      <%= render DS::Link.new(
+        text: t("recurring_transactions.identify_patterns"),
+        icon: "search",
+        variant: "outline",
+        href: identify_recurring_transactions_path,
+        method: :post
+      ) %>
+      <%= render DS::Link.new(
+        text: t("recurring_transactions.cleanup_stale"),
+        icon: "trash-2",
+        variant: "outline",
+        href: cleanup_recurring_transactions_path,
+        method: :post
+      ) %>
+    </div>
+  </header>
+
+  <div class="p-4 bg-container-inset border border-secondary rounded-lg">
+    <div class="flex items-start gap-2">
+      <%= icon "info", class: "w-5 h-5 text-link mt-0.5 flex-shrink-0" %>
+      <div>
+        <p class="text-sm font-medium text-primary mb-2"><%= t("recurring_transactions.info.title") %></p>
+        <p class="text-xs text-secondary mb-2"><%= t("recurring_transactions.info.manual_description") %></p>
+        <p class="text-xs text-secondary mb-1"><%= t("recurring_transactions.info.automatic_description") %></p>
+        <ul class="list-disc list-inside text-xs text-secondary space-y-0.5 ml-2">
+          <% t("recurring_transactions.info.triggers").each do |trigger| %>
+            <li><%= trigger %></li>
+          <% end %>
+        </ul>
+      </div>
+    </div>
+  </div>
+
+  <div class="bg-container rounded-xl shadow-border-xs p-4">
+    <% if @recurring_transactions.empty? %>
+      <div class="text-center py-12">
+        <div class="text-secondary mb-4">
+          <%= icon "repeat", size: "xl" %>
+        </div>
+        <p class="text-primary font-medium mb-2"><%= t("recurring_transactions.empty.title") %></p>
+        <p class="text-secondary text-sm mb-4"><%= t("recurring_transactions.empty.description") %></p>
+        <%= render DS::Link.new(
+          text: t("recurring_transactions.identify_patterns"),
+          icon: "search",
+          variant: "primary",
+          href: identify_recurring_transactions_path,
+          method: :post
+        ) %>
+      </div>
+    <% else %>
+      <div class="rounded-xl bg-container-inset space-y-1 p-1">
+        <div class="flex items-center gap-1.5 px-4 py-2 text-xs font-medium text-secondary uppercase">
+          <p><%= t("recurring_transactions.title") %></p>
+          <span class="text-subdued">&middot;</span>
+          <p><%= @recurring_transactions.count %></p>
+        </div>
+
+        <div class="bg-container rounded-lg shadow-border-xs overflow-x-auto">
+          <table class="w-full">
+          <thead>
+            <tr class="text-xs uppercase font-medium text-secondary border-b border-divider">
+              <th class="text-left py-3 px-2"><%= t("recurring_transactions.table.merchant") %></th>
+              <th class="text-left py-3 px-2"><%= t("recurring_transactions.table.amount") %></th>
+              <th class="text-left py-3 px-2"><%= t("recurring_transactions.table.expected_day") %></th>
+              <th class="text-left py-3 px-2"><%= t("recurring_transactions.table.next_date") %></th>
+              <th class="text-left py-3 px-2"><%= t("recurring_transactions.table.last_occurrence") %></th>
+              <th class="text-left py-3 px-2"><%= t("recurring_transactions.table.status") %></th>
+              <th class="text-right py-3 px-2"><%= t("recurring_transactions.table.actions") %></th>
+            </tr>
+          </thead>
+          <tbody>
+            <% @recurring_transactions.each do |recurring_transaction| %>
+              <tr class="border-b border-subdued hover:bg-surface-hover <%= "opacity-60" unless recurring_transaction.active? %>">
+                <td class="py-3 px-2 text-sm">
+                  <div class="flex items-center gap-2">
+                    <% if recurring_transaction.merchant&.logo_url.present? %>
+                      <%= image_tag recurring_transaction.merchant.logo_url,
+                          class: "w-6 h-6 rounded-full",
+                          loading: "lazy" %>
+                    <% else %>
+                      <%= render DS::FilledIcon.new(
+                        variant: :text,
+                        text: recurring_transaction.merchant.name,
+                        size: "sm",
+                        rounded: true
+                      ) %>
+                    <% end %>
+                    <span class="text-primary font-medium"><%= recurring_transaction.merchant.name %></span>
+                  </div>
+                </td>
+                <td class="py-3 px-2 text-sm font-medium <%= recurring_transaction.amount.negative? ? "text-success" : "text-primary" %>">
+                  <%= format_money(-recurring_transaction.amount_money) %>
+                </td>
+                <td class="py-3 px-2 text-sm text-secondary">
+                  <%= t("recurring_transactions.day_of_month", day: recurring_transaction.expected_day_of_month) %>
+                </td>
+                <td class="py-3 px-2 text-sm text-secondary">
+                  <%= l(recurring_transaction.next_expected_date, format: :short) %>
+                </td>
+                <td class="py-3 px-2 text-sm text-secondary">
+                  <%= l(recurring_transaction.last_occurrence_date, format: :short) %>
+                </td>
+                <td class="py-3 px-2 text-sm">
+                  <% if recurring_transaction.active? %>
+                    <span class="inline-flex items-center px-2 py-0.5 rounded text-xs font-medium bg-green-50 text-success">
+                      <%= t("recurring_transactions.status.active") %>
+                    </span>
+                  <% else %>
+                    <span class="inline-flex items-center px-2 py-0.5 rounded text-xs font-medium bg-surface-inset text-primary">
+                      <%= t("recurring_transactions.status.inactive") %>
+                    </span>
+                  <% end %>
+                </td>
+                <td class="py-3 px-2 text-sm text-right">
+                  <div class="flex items-center justify-end gap-2">
+                    <%= link_to toggle_status_recurring_transaction_path(recurring_transaction),
+                        data: { turbo_method: :post },
+                        class: "text-secondary hover:text-primary" do %>
+                      <%= icon recurring_transaction.active? ? "pause" : "play", size: "sm" %>
+                    <% end %>
+                    <%= link_to recurring_transaction_path(recurring_transaction),
+                        data: { turbo_method: :delete, turbo_confirm: t("recurring_transactions.confirm_delete") },
+                        class: "text-secondary hover:text-destructive" do %>
+                      <%= icon "trash-2", size: "sm" %>
+                    <% end %>
+                  </div>
+                </td>
+              </tr>
+            <% end %>
+          </tbody>
+        </table>
+        </div>
+      </div>
+    <% end %>
+  </div>
+</div>
diff --git a/app/views/settings/_settings_nav.html.erb b/app/views/settings/_settings_nav.html.erb
index 43510e849..95d241b32 100644
--- a/app/views/settings/_settings_nav.html.erb
+++ b/app/views/settings/_settings_nav.html.erb
@@ -17,7 +17,8 @@ nav_sections = [
       { label: t(".categories_label"), path: categories_path, icon: "shapes" },
       { label: t(".tags_label"), path: tags_path, icon: "tags" },
       { label: t(".rules_label"), path: rules_path, icon: "git-branch" },
-      { label: t(".merchants_label"), path: family_merchants_path, icon: "store" }
+      { label: t(".merchants_label"), path: family_merchants_path, icon: "store" },
+      { label: t(".recurring_transactions_label"), path: recurring_transactions_path, icon: "repeat" }
     ]
   },
   (
diff --git a/app/views/settings/ai_prompts/show.html.erb b/app/views/settings/ai_prompts/show.html.erb
index 9a494d4c4..6847b0481 100644
--- a/app/views/settings/ai_prompts/show.html.erb
+++ b/app/views/settings/ai_prompts/show.html.erb
@@ -32,7 +32,7 @@
               <p class="text-xs text-secondary"><%= t(".main_system_prompt.subtitle") %></p>
             </div>
           </div>
-          
+
           <div class="pl-12 space-y-2">
             <details class="group">
               <summary class="flex items-center gap-2 cursor-pointer">
@@ -60,7 +60,7 @@
               <p class="text-xs text-secondary"><%= t(".transaction_categorizer.subtitle") %></p>
             </div>
           </div>
-          
+
           <div class="pl-12 space-y-2">
             <details class="group">
               <summary class="flex items-center gap-2 cursor-pointer">
@@ -88,7 +88,7 @@
               <p class="text-xs text-secondary"><%= t(".merchant_detector.subtitle") %></p>
             </div>
           </div>
-          
+
           <div class="pl-12 space-y-2">
             <details class="group">
               <summary class="flex items-center gap-2 cursor-pointer">
@@ -105,4 +105,4 @@
       </div>
     </div>
   </div>
-</div>
\ No newline at end of file
+</div>
diff --git a/app/views/settings/bank_sync/_provider_link.html.erb b/app/views/settings/bank_sync/_provider_link.html.erb
index 8a2d524cd..41a69d9ff 100644
--- a/app/views/settings/bank_sync/_provider_link.html.erb
+++ b/app/views/settings/bank_sync/_provider_link.html.erb
@@ -3,13 +3,13 @@
 <%# Assign distinct colors to each provider %>
 <% provider_colors = {
   "Lunch Flow" => "#6471eb",
-  "Plaid" => "#4da568", 
+  "Plaid" => "#4da568",
   "SimpleFin" => "#e99537"
 } %>
 <% provider_color = provider_colors[provider_link[:name]] || "#6B7280" %>
 
-<%= link_to provider_link[:path], 
-            target: provider_link[:target], 
+<%= link_to provider_link[:path],
+            target: provider_link[:target],
             rel: provider_link[:rel],
             class: "flex justify-between items-center p-4 bg-container hover:bg-container-hover transition-colors" do %>
   <div class="flex w-full items-center gap-2.5">
@@ -28,5 +28,3 @@
     <%= icon("arrow-right", size: "sm", class: "text-secondary") %>
   </div>
 <% end %>
-
-
diff --git a/app/views/settings/bank_sync/show.html.erb b/app/views/settings/bank_sync/show.html.erb
index 56f634743..51c42bfcb 100644
--- a/app/views/settings/bank_sync/show.html.erb
+++ b/app/views/settings/bank_sync/show.html.erb
@@ -1,6 +1,5 @@
 <%= content_for :page_title, "Bank Sync" %>
 
-
 <div class="bg-container rounded-xl shadow-border-xs p-4">
   <% if @providers.any? %>
     <div class="rounded-xl bg-container-inset space-y-1 p-1">
@@ -25,5 +24,3 @@
     </div>
   <% end %>
 </div>
-
-
diff --git a/app/views/trades/_form.html.erb b/app/views/trades/_form.html.erb
index cb248ece9..034e890bf 100644
--- a/app/views/trades/_form.html.erb
+++ b/app/views/trades/_form.html.erb
@@ -50,7 +50,7 @@
 
       <% if %w[buy sell].include?(type) %>
         <%= form.number_field :qty, label: t(".qty"), placeholder: "10", min: 0.000000000000000001, step: "any", required: true %>
-        <%= form.money_field :price, label: t(".price"), step: 'any', precision: 10, required: true %>
+        <%= form.money_field :price, label: t(".price"), step: "any", precision: 10, required: true %>
       <% end %>
     </div>
 
diff --git a/app/views/transactions/index.html.erb b/app/views/transactions/index.html.erb
index 8fa5860cc..6f8a0a486 100644
--- a/app/views/transactions/index.html.erb
+++ b/app/views/transactions/index.html.erb
@@ -56,7 +56,7 @@
       <%= render "transactions/selection_bar" %>
     </div>
 
-    <% if @pagy.count > 0 %>
+    <% if @pagy.count > 0 || (@projected_recurring.any? && @q.blank?) %>
       <div class="grow overflow-y-auto">
         <div class="grid-cols-12 bg-container-inset rounded-xl px-5 py-3 text-xs uppercase font-medium text-secondary items-center mb-4 hidden md:grid">
           <div class="pl-0.5 col-span-8 flex items-center gap-4">
@@ -80,6 +80,20 @@
         <% end %>
 
         <div class="space-y-6">
+          <% if @projected_recurring.any? && @q.blank? %>
+            <div class="space-y-2">
+              <h3 class="text-xs uppercase font-medium text-secondary px-2"><%= t("recurring_transactions.upcoming") %></h3>
+              <% @projected_recurring.group_by(&:next_expected_date).sort.each do |date, transactions| %>
+                <div class="space-y-2">
+                  <div class="text-xs text-secondary px-2 pt-2"><%= l(date, format: :long) %></div>
+                  <% transactions.each do |recurring_transaction| %>
+                    <%= render "recurring_transactions/projected_transaction", recurring_transaction: recurring_transaction %>
+                  <% end %>
+                </div>
+              <% end %>
+            </div>
+          <% end %>
+
           <%= entries_by_date(@transactions.map(&:entry), totals: true) do |entries| %>
             <%= render entries %>
           <% end %>
diff --git a/config/locales/views/recurring_transactions/en.yml b/config/locales/views/recurring_transactions/en.yml
new file mode 100644
index 000000000..69df3ad81
--- /dev/null
+++ b/config/locales/views/recurring_transactions/en.yml
@@ -0,0 +1,38 @@
+---
+en:
+  recurring_transactions:
+    title: Recurring Transactions
+    upcoming: Upcoming Recurring Transactions
+    projected: Projected
+    recurring: Recurring
+    expected_on: Expected on %{date}
+    day_of_month: Day %{day} of month
+    identify_patterns: Identify Patterns
+    cleanup_stale: Clean Up Stale
+    info:
+      title: Automatic Pattern Detection
+      manual_description: You can manually identify patterns or clean up stale recurring transactions using the buttons above.
+      automatic_description: "Automatic identification also runs after:"
+      triggers:
+        - CSV imports complete (transactions, trades, accounts, etc. )
+        - Any provider sync completes ( Plaid, SimpleFIN, etc. )
+    identified: Identified %{count} recurring transaction patterns
+    cleaned_up: Cleaned up %{count} stale recurring transactions
+    marked_inactive: Recurring transaction marked as inactive
+    marked_active: Recurring transaction marked as active
+    deleted: Recurring transaction deleted
+    confirm_delete: Are you sure you want to delete this recurring transaction?
+    empty:
+      title: No recurring transactions found
+      description: Click "Identify Patterns" to automatically detect recurring transactions from your transaction history.
+    table:
+      merchant: Merchant
+      amount: Amount
+      expected_day: Expected Day
+      next_date: Next Date
+      last_occurrence: Last Occurrence
+      status: Status
+      actions: Actions
+    status:
+      active: Active
+      inactive: Inactive
diff --git a/config/locales/views/settings/en.yml b/config/locales/views/settings/en.yml
index 55764b403..62cd778ee 100644
--- a/config/locales/views/settings/en.yml
+++ b/config/locales/views/settings/en.yml
@@ -105,6 +105,7 @@ en:
       other_section_title: More
       preferences_label: Preferences
       profile_label: Profile Info
+      recurring_transactions_label: Recurring
       rules_label: Rules
       security_label: Security
       self_hosting_label: Self-Hosting
diff --git a/config/routes.rb b/config/routes.rb
index ba8cf8ad8..fbdecead0 100644
--- a/config/routes.rb
+++ b/config/routes.rb
@@ -149,6 +149,17 @@ Rails.application.routes.draw do
     end
   end
 
+  resources :recurring_transactions, only: %i[index destroy] do
+    collection do
+      match :identify, via: [ :get, :post ]
+      match :cleanup, via: [ :get, :post ]
+    end
+
+    member do
+      match :toggle_status, via: [ :get, :post ]
+    end
+  end
+
   resources :accountable_sparklines, only: :show, param: :accountable_type
 
   direct :entry do |entry, options|
diff --git a/db/migrate/20251031132654_create_recurring_transactions.rb b/db/migrate/20251031132654_create_recurring_transactions.rb
new file mode 100644
index 000000000..24bceb292
--- /dev/null
+++ b/db/migrate/20251031132654_create_recurring_transactions.rb
@@ -0,0 +1,23 @@
+class CreateRecurringTransactions < ActiveRecord::Migration[7.2]
+  def change
+    create_table :recurring_transactions, id: :uuid do |t|
+      t.references :family, null: false, foreign_key: true, type: :uuid
+      t.references :merchant, null: false, foreign_key: true, type: :uuid
+      t.decimal :amount, precision: 19, scale: 4, null: false
+      t.string :currency, null: false
+      t.integer :expected_day_of_month, null: false
+      t.date :last_occurrence_date, null: false
+      t.date :next_expected_date, null: false
+      t.string :status, default: "active", null: false
+      t.integer :occurrence_count, default: 0, null: false
+
+      t.timestamps
+    end
+
+    add_index :recurring_transactions, [ :family_id, :merchant_id, :amount, :currency ],
+              unique: true,
+              name: "idx_recurring_txns_on_family_merchant_amount_currency"
+    add_index :recurring_transactions, [ :family_id, :status ]
+    add_index :recurring_transactions, :next_expected_date
+  end
+end
diff --git a/db/schema.rb b/db/schema.rb
index a3cdddc55..955a0cfd3 100644
--- a/db/schema.rb
+++ b/db/schema.rb
@@ -10,7 +10,7 @@
 #
 # It's strongly recommended that you check this file into your version control system.
 
-ActiveRecord::Schema[7.2].define(version: 2025_10_29_204447) do
+ActiveRecord::Schema[7.2].define(version: 2025_10_31_132654) do
   # These are extensions that must be enabled in order to support this database
   enable_extension "pgcrypto"
   enable_extension "plpgsql"
@@ -674,6 +674,25 @@ ActiveRecord::Schema[7.2].define(version: 2025_10_29_204447) do
     t.string "subtype"
   end
 
+  create_table "recurring_transactions", id: :uuid, default: -> { "gen_random_uuid()" }, force: :cascade do |t|
+    t.uuid "family_id", null: false
+    t.uuid "merchant_id", null: false
+    t.decimal "amount", precision: 19, scale: 4, null: false
+    t.string "currency", null: false
+    t.integer "expected_day_of_month", null: false
+    t.date "last_occurrence_date", null: false
+    t.date "next_expected_date", null: false
+    t.string "status", default: "active", null: false
+    t.integer "occurrence_count", default: 0, null: false
+    t.datetime "created_at", null: false
+    t.datetime "updated_at", null: false
+    t.index ["family_id", "merchant_id", "amount", "currency"], name: "idx_recurring_txns_on_family_merchant_amount_currency", unique: true
+    t.index ["family_id", "status"], name: "index_recurring_transactions_on_family_id_and_status"
+    t.index ["family_id"], name: "index_recurring_transactions_on_family_id"
+    t.index ["merchant_id"], name: "index_recurring_transactions_on_merchant_id"
+    t.index ["next_expected_date"], name: "index_recurring_transactions_on_next_expected_date"
+  end
+
   create_table "rejected_transfers", id: :uuid, default: -> { "gen_random_uuid()" }, force: :cascade do |t|
     t.uuid "inflow_transaction_id", null: false
     t.uuid "outflow_transaction_id", null: false
@@ -1008,6 +1027,8 @@ ActiveRecord::Schema[7.2].define(version: 2025_10_29_204447) do
   add_foreign_key "oidc_identities", "users"
   add_foreign_key "plaid_accounts", "plaid_items"
   add_foreign_key "plaid_items", "families"
+  add_foreign_key "recurring_transactions", "families"
+  add_foreign_key "recurring_transactions", "merchants"
   add_foreign_key "rejected_transfers", "transactions", column: "inflow_transaction_id"
   add_foreign_key "rejected_transfers", "transactions", column: "outflow_transaction_id"
   add_foreign_key "rule_actions", "rules"
diff --git a/test/fixtures/recurring_transactions.yml b/test/fixtures/recurring_transactions.yml
new file mode 100644
index 000000000..768012871
--- /dev/null
+++ b/test/fixtures/recurring_transactions.yml
@@ -0,0 +1,21 @@
+netflix_subscription:
+  family: dylan_family
+  merchant: netflix
+  amount: 15.99
+  currency: USD
+  expected_day_of_month: 5
+  last_occurrence_date: <%= 1.month.ago.to_date %>
+  next_expected_date: <%= 5.days.from_now.to_date %>
+  status: active
+  occurrence_count: 3
+
+inactive_subscription:
+  family: dylan_family
+  merchant: amazon
+  amount: 9.99
+  currency: USD
+  expected_day_of_month: 15
+  last_occurrence_date: <%= 3.months.ago.to_date %>
+  next_expected_date: <%= 2.months.ago.to_date %>
+  status: inactive
+  occurrence_count: 2
diff --git a/test/models/recurring_transaction/identifier_test.rb b/test/models/recurring_transaction/identifier_test.rb
new file mode 100644
index 000000000..d7a7f93be
--- /dev/null
+++ b/test/models/recurring_transaction/identifier_test.rb
@@ -0,0 +1,248 @@
+require "test_helper"
+
+class RecurringTransaction::IdentifierTest < ActiveSupport::TestCase
+  def setup
+    @family = families(:dylan_family)
+    @identifier = RecurringTransaction::Identifier.new(@family)
+    @family.recurring_transactions.destroy_all
+  end
+
+  test "identifies recurring pattern with transactions on similar days mid-month" do
+    account = @family.accounts.first
+    merchant = merchants(:netflix)
+
+    # Create 3 transactions on days 5, 6, 7 (clearly clustered)
+    [ 5, 6, 7 ].each_with_index do |day, i|
+      transaction = Transaction.create!(
+        merchant: merchant,
+        category: categories(:food_and_drink)
+      )
+      account.entries.create!(
+        date: i.months.ago.beginning_of_month + (day - 1).days,
+        amount: 15.99,
+        currency: "USD",
+        name: "Netflix Subscription",
+        entryable: transaction
+      )
+    end
+
+    patterns_count = @identifier.identify_recurring_patterns
+
+    assert_equal 1, patterns_count
+    assert_equal 1, @family.recurring_transactions.count
+
+    recurring = @family.recurring_transactions.first
+    assert_equal merchant, recurring.merchant
+    assert_equal 15.99, recurring.amount
+    assert_in_delta 6, recurring.expected_day_of_month, 1  # Should be around day 6
+  end
+
+  test "identifies recurring pattern with transactions wrapping month boundary" do
+    account = @family.accounts.first
+    merchant = merchants(:netflix)
+
+    # Create 3 transactions on days 30, 31, 1 (wraps around month boundary)
+    dates = [
+      2.months.ago.end_of_month - 1.day,  # Day 30
+      1.month.ago.end_of_month,           # Day 31
+      Date.current.beginning_of_month     # Day 1
+    ]
+
+    dates.each do |date|
+      transaction = Transaction.create!(
+        merchant: merchant,
+        category: categories(:food_and_drink)
+      )
+      account.entries.create!(
+        date: date,
+        amount: 15.99,
+        currency: "USD",
+        name: "Netflix Subscription",
+        entryable: transaction
+      )
+    end
+
+    patterns_count = @identifier.identify_recurring_patterns
+
+    assert_equal 1, patterns_count, "Should identify pattern wrapping month boundary"
+    assert_equal 1, @family.recurring_transactions.count
+
+    recurring = @family.recurring_transactions.first
+    assert_equal merchant, recurring.merchant
+    assert_equal 15.99, recurring.amount
+    # Add validation that expected_day is near 31 or 1, not mid-month
+    assert_includes [ 30, 31, 1 ], recurring.expected_day_of_month,
+      "Expected day should be near month boundary (30, 31, or 1), not mid-month. Got: #{recurring.expected_day_of_month}"
+  end
+
+  test "identifies recurring pattern with transactions spanning end and start of month" do
+    account = @family.accounts.first
+    merchant = merchants(:netflix)
+
+    # Create 3 transactions on days 28, 29, 30, 31, 1, 2 (should cluster with circular distance)
+    dates = [
+      3.months.ago.end_of_month - 3.days,  # Day 28
+      2.months.ago.end_of_month - 2.days,  # Day 29
+      2.months.ago.end_of_month - 1.day,   # Day 30
+      1.month.ago.end_of_month,            # Day 31
+      Date.current.beginning_of_month,     # Day 1
+      Date.current.beginning_of_month + 1.day  # Day 2
+    ]
+
+    dates.each do |date|
+      transaction = Transaction.create!(
+        merchant: merchant,
+        category: categories(:food_and_drink)
+      )
+      account.entries.create!(
+        date: date,
+        amount: 15.99,
+        currency: "USD",
+        name: "Netflix Subscription",
+        entryable: transaction
+      )
+    end
+
+    patterns_count = @identifier.identify_recurring_patterns
+
+    assert_equal 1, patterns_count, "Should identify pattern with circular clustering at month boundary"
+    assert_equal 1, @family.recurring_transactions.count
+
+    recurring = @family.recurring_transactions.first
+    assert_equal merchant, recurring.merchant
+    assert_equal 15.99, recurring.amount
+    # Validate expected_day falls within the cluster range (28-31 or 1-2), not an outlier like day 15
+    assert_includes (28..31).to_a + [ 1, 2 ], recurring.expected_day_of_month,
+      "Expected day should be within cluster range (28-31 or 1-2), not mid-month. Got: #{recurring.expected_day_of_month}"
+  end
+
+  test "does not identify pattern when days are not clustered" do
+    account = @family.accounts.first
+    merchant = merchants(:netflix)
+
+    # Create 3 transactions on days 1, 15, 30 (widely spread, should not cluster)
+    [ 1, 15, 30 ].each_with_index do |day, i|
+      transaction = Transaction.create!(
+        merchant: merchant,
+        category: categories(:food_and_drink)
+      )
+      account.entries.create!(
+        date: i.months.ago.beginning_of_month + (day - 1).days,
+        amount: 15.99,
+        currency: "USD",
+        name: "Netflix Subscription",
+        entryable: transaction
+      )
+    end
+
+    patterns_count = @identifier.identify_recurring_patterns
+
+    assert_equal 0, patterns_count
+    assert_equal 0, @family.recurring_transactions.count
+  end
+
+  test "does not identify pattern with fewer than 3 occurrences" do
+    account = @family.accounts.first
+    merchant = merchants(:netflix)
+
+    # Create only 2 transactions
+    [ 5, 6 ].each_with_index do |day, i|
+      transaction = Transaction.create!(
+        merchant: merchant,
+        category: categories(:food_and_drink)
+      )
+      account.entries.create!(
+        date: i.months.ago.beginning_of_month + (day - 1).days,
+        amount: 15.99,
+        currency: "USD",
+        name: "Netflix Subscription",
+        entryable: transaction
+      )
+    end
+
+    patterns_count = @identifier.identify_recurring_patterns
+
+    assert_equal 0, patterns_count
+    assert_equal 0, @family.recurring_transactions.count
+  end
+
+  test "updates existing recurring transaction when pattern is found again" do
+    account = @family.accounts.first
+    merchant = merchants(:amazon)  # Use different merchant to avoid fixture conflicts
+
+    # Create initial recurring transaction
+    existing = @family.recurring_transactions.create!(
+      merchant: merchant,
+      amount: 29.99,
+      currency: "USD",
+      expected_day_of_month: 15,
+      last_occurrence_date: 2.months.ago.to_date,
+      next_expected_date: 1.month.ago.to_date,
+      occurrence_count: 2,
+      status: "active"
+    )
+
+    # Create 3 new transactions on similar clustered days
+    [ 0, 1, 2 ].each do |months_ago|
+      transaction = Transaction.create!(
+        merchant: merchant,
+        category: categories(:food_and_drink)
+      )
+      account.entries.create!(
+        date: months_ago.months.ago.beginning_of_month + 14.days,  # Day 15
+        amount: 29.99,
+        currency: "USD",
+        name: "Amazon Purchase",
+        entryable: transaction
+      )
+    end
+
+    assert_no_difference "@family.recurring_transactions.count" do
+      @identifier.identify_recurring_patterns
+    end
+
+    recurring = @family.recurring_transactions.first
+    assert_equal existing.id, recurring.id, "Should update existing recurring transaction"
+    assert_equal "active", recurring.status
+    # Verify last_occurrence_date was updated
+    assert recurring.last_occurrence_date >= 2.months.ago.to_date
+  end
+
+  test "circular_distance calculates correct distance for days near month boundary" do
+    # Test wrapping: day 31 to day 1 should be distance 1 (31 -> 1 is one day forward)
+    distance = @identifier.send(:circular_distance, 31, 1)
+    assert_equal 1, distance
+
+    # Test wrapping: day 1 to day 31 should also be distance 1 (wraps backward)
+    distance = @identifier.send(:circular_distance, 1, 31)
+    assert_equal 1, distance
+
+    # Test wrapping: day 30 to day 2 should be distance 3 (30->31->1->2 = 3 steps)
+    distance = @identifier.send(:circular_distance, 30, 2)
+    assert_equal 3, distance
+
+    # Test non-wrapping: day 15 to day 10 should be distance 5
+    distance = @identifier.send(:circular_distance, 15, 10)
+    assert_equal 5, distance
+
+    # Test same day: distance should be 0
+    distance = @identifier.send(:circular_distance, 15, 15)
+    assert_equal 0, distance
+  end
+
+  test "days_cluster_together returns true for days wrapping month boundary" do
+    # Days 29, 30, 31, 1, 2 should cluster (circular distance)
+    days = [ 29, 30, 31, 1, 2 ]
+    assert @identifier.send(:days_cluster_together?, days), "Should cluster with circular distance"
+  end
+
+  test "days_cluster_together returns true for consecutive mid-month days" do
+    days = [ 10, 11, 12, 13 ]
+    assert @identifier.send(:days_cluster_together?, days)
+  end
+
+  test "days_cluster_together returns false for widely spread days" do
+    days = [ 1, 15, 30 ]
+    assert_not @identifier.send(:days_cluster_together?, days)
+  end
+end
diff --git a/test/models/recurring_transaction_test.rb b/test/models/recurring_transaction_test.rb
new file mode 100644
index 000000000..924a02b1c
--- /dev/null
+++ b/test/models/recurring_transaction_test.rb
@@ -0,0 +1,172 @@
+require "test_helper"
+
+class RecurringTransactionTest < ActiveSupport::TestCase
+  def setup
+    @family = families(:dylan_family)
+    @merchant = merchants(:netflix)
+    # Clear any existing recurring transactions
+    @family.recurring_transactions.destroy_all
+  end
+
+  test "identify_patterns_for creates recurring transactions for patterns with 3+ occurrences" do
+    # Create a series of transactions with same merchant and amount on similar days
+    # Use dates within the last 3 months: today, 1 month ago, 2 months ago
+    account = @family.accounts.first
+    [ 0, 1, 2 ].each do |months_ago|
+      transaction = Transaction.create!(
+        merchant: @merchant,
+        category: categories(:food_and_drink)
+      )
+      account.entries.create!(
+        date: months_ago.months.ago.beginning_of_month + 5.days,
+        amount: 15.99,
+        currency: "USD",
+        name: "Netflix Subscription",
+        entryable: transaction
+      )
+    end
+
+    assert_difference "@family.recurring_transactions.count", 1 do
+      RecurringTransaction.identify_patterns_for(@family)
+    end
+
+    recurring = @family.recurring_transactions.last
+    assert_equal @merchant, recurring.merchant
+    assert_equal 15.99, recurring.amount
+    assert_equal "USD", recurring.currency
+    assert_equal "active", recurring.status
+    assert_equal 3, recurring.occurrence_count
+  end
+
+  test "identify_patterns_for does not create recurring transaction for less than 3 occurrences" do
+    # Create only 2 transactions
+    account = @family.accounts.first
+    2.times do |i|
+      transaction = Transaction.create!(
+        merchant: @merchant,
+        category: categories(:food_and_drink)
+      )
+      account.entries.create!(
+        date: (i + 1).months.ago.beginning_of_month + 5.days,
+        amount: 15.99,
+        currency: "USD",
+        name: "Netflix Subscription",
+        entryable: transaction
+      )
+    end
+
+    assert_no_difference "@family.recurring_transactions.count" do
+      RecurringTransaction.identify_patterns_for(@family)
+    end
+  end
+
+  test "calculate_next_expected_date handles end of month correctly" do
+    recurring = @family.recurring_transactions.create!(
+      merchant: @merchant,
+      amount: 29.99,
+      currency: "USD",
+      expected_day_of_month: 31,
+      last_occurrence_date: Date.new(2025, 1, 31),
+      next_expected_date: Date.new(2025, 2, 28),
+      status: "active"
+    )
+
+    # February doesn't have 31 days, should return last day of February
+    next_date = recurring.calculate_next_expected_date(Date.new(2025, 1, 31))
+    assert_equal Date.new(2025, 2, 28), next_date
+  end
+
+  test "should_be_inactive? returns true when last occurrence is over 2 months ago" do
+    recurring = @family.recurring_transactions.create!(
+      merchant: merchants(:amazon),
+      amount: 19.99,
+      currency: "USD",
+      expected_day_of_month: 5,
+      last_occurrence_date: 3.months.ago.to_date,
+      next_expected_date: 2.months.ago.to_date,
+      status: "active"
+    )
+
+    assert recurring.should_be_inactive?
+  end
+
+  test "should_be_inactive? returns false when last occurrence is within 2 months" do
+    recurring = @family.recurring_transactions.create!(
+      merchant: merchants(:amazon),
+      amount: 25.99,
+      currency: "USD",
+      expected_day_of_month: 5,
+      last_occurrence_date: 1.month.ago.to_date,
+      next_expected_date: Date.current,
+      status: "active"
+    )
+
+    assert_not recurring.should_be_inactive?
+  end
+
+  test "cleanup_stale_for marks inactive when no recent occurrences" do
+    recurring = @family.recurring_transactions.create!(
+      merchant: merchants(:amazon),
+      amount: 35.99,
+      currency: "USD",
+      expected_day_of_month: 5,
+      last_occurrence_date: 3.months.ago.to_date,
+      next_expected_date: 2.months.ago.to_date,
+      status: "active"
+    )
+
+    RecurringTransaction.cleanup_stale_for(@family)
+
+    assert_equal "inactive", recurring.reload.status
+  end
+
+  test "record_occurrence! updates recurring transaction with new occurrence" do
+    recurring = @family.recurring_transactions.create!(
+      merchant: merchants(:amazon),
+      amount: 45.99,
+      currency: "USD",
+      expected_day_of_month: 5,
+      last_occurrence_date: 1.month.ago.to_date,
+      next_expected_date: Date.current,
+      status: "active",
+      occurrence_count: 3
+    )
+
+    new_date = Date.current
+    recurring.record_occurrence!(new_date)
+
+    assert_equal new_date, recurring.last_occurrence_date
+    assert_equal 4, recurring.occurrence_count
+    assert_equal "active", recurring.status
+    assert recurring.next_expected_date > new_date
+  end
+
+  test "identify_patterns_for preserves sign for income transactions" do
+    # Create recurring income transactions (negative amounts)
+    account = @family.accounts.first
+    [ 0, 1, 2 ].each do |months_ago|
+      transaction = Transaction.create!(
+        merchant: @merchant,
+        category: categories(:income)
+      )
+      account.entries.create!(
+        date: months_ago.months.ago.beginning_of_month + 15.days,
+        amount: -1000.00,
+        currency: "USD",
+        name: "Monthly Salary",
+        entryable: transaction
+      )
+    end
+
+    assert_difference "@family.recurring_transactions.count", 1 do
+      RecurringTransaction.identify_patterns_for(@family)
+    end
+
+    recurring = @family.recurring_transactions.last
+    assert_equal @merchant, recurring.merchant
+    assert_equal(-1000.00, recurring.amount)
+    assert recurring.amount.negative?, "Income should have negative amount"
+    assert_equal "USD", recurring.currency
+    assert_equal "active", recurring.status
+  end
+end