SIP vs FD Calculator 2026 — Equity SIP vs Fixed Deposit

Compare returns, tax drag, and inflation-beating wealth creation between Equity Mutual Fund SIP and Bank Fixed Deposits

Investment Parameters

Monthly Investment Amount

₹

Quick Presets:

₹500₹5.00 L

Investment Horizon (Years)

Yrs

1 Yr30 Yrs

Expected Equity SIP Return (% p.a.)

5%25%

Bank FD Interest Rate (% p.a.)

3%10%

Other taxable income (yearly)

₹

₹0₹5.00 Cr

Tax regime

Extra Wealth Generated: +₹5.56 L; Equity SIP Outperforms FD by 1.34x Post-Tax

By investing ₹10,000 monthly for 10 years, an Equity SIP delivers an estimated ₹21.94 L net in-hand compared to ₹16.38 L from a Bank FD.

📈 Equity Mutual Fund SIP: ₹21.94 L; @12% CAGR

Gross Value:: ₹23.23 L
LTCG Tax (12.5%):: -₹1.30 L
Net Wealth Gain:: +₹9.94 L

🏦 Bank Fixed Deposit (FD): ₹16.38 L; @7% p.a.

Pre-Tax Maturity:: ₹17.37 L
Lost to tax, paid yearly:: -₹99,285
Net Wealth Gain:: +₹4.38 L

Total Capital Invested: ₹12.00 L over 10 years.

10-Year Wealth Accumulation: Equity SIP vs Bank FD

SIP vs FD after tax, with your numbers

Standard Formula

SIP: LTCG at 12.5% above ₹1.25L, on top of your other income. FD: each year's interest taxed at slab rates on top of your other income.

Live Calculation (Plugging Your Values)

SIP after tax (S):₹21.94 L

FD after tax (F):₹16.38 L

LTCG on the SIP (L):₹1.30 L

Tax on FD interest (T):₹99,285

Substituted Equation:

SIP ₹21.94 L vs FD ₹16.38 L, difference ₹5.56 L

After-tax difference:₹5.56 L

The comparison only means something after tax, because the two are taxed very differently. FD interest is added to your income and taxed every year, even though you have not withdrawn it: here each year's interest is taxed on top of the other income you enter, under the regime you pick, with the Section 87A rebate, any surcharge and 4% cess, and the tax leaves the deposit at the year end. Equity held over a year pays 12.5% only on redemption, on the gain above ₹1.25 lakh in that year, plus any surcharge and 4% cess; here the whole SIP is redeemed at the end, on top of the same income.

References

How these numbers are checked →

SIP vs Fixed Deposit FAQs

Is a SIP better than a Fixed Deposit for long-term investment?

For horizons beyond 7 years, usually yes. Equity SIPs have historically returned 12%–15% against 6.5%–7.5% for FDs, and equity LTCG is taxed at 12.5% above ₹1.25 lakh while FD interest is taxed at your full slab. The trade-off is volatility: a SIP can be down 30% in a bad year, an FD cannot.

How much extra wealth does an equity SIP generate compared to an FD?

₹10,000 a month for 20 years grows to roughly ₹1 crore at 12% in an equity SIP, against about ₹52 lakh at 7% in an FD — before tax. After tax the gap widens further, because FD interest is taxed annually at slab rate while SIP gains are taxed only on redemption.

When is a Fixed Deposit the better choice?

Whenever the money is needed within three years, or is your emergency fund. Capital certainty beats expected return when a market fall would force you to sell. FDs also suit senior citizens using Section 80TTB and the 0.5% senior rate premium.

How is FD interest taxed compared to an equity SIP under the New Regime?

FD interest is added to your income and taxed at slab rates every year, whether or not you withdraw it, because banks report it on accrual. An equity SIP is taxed only when you redeem — 20% short-term under section 111A, or 12.5% long-term above the Rs 1.25 lakh yearly exemption. At the 30% slab a 7% FD returns about 4.82% after tax, while the SIP compounds untaxed until you sell. Both regimes tax them the same way; only the slab rate your interest falls in differs, which is why this page asks for your income and regime.

When does the bank deduct TDS on my fixed deposit interest?

From 1 April 2025 a bank deducts TDS at 10% once your interest across all its branches crosses Rs 50,000 in a financial year, and Rs 1,00,000 for senior citizens. Without PAN the rate is 20%. TDS is not the final tax — if your slab is 30% you still owe the balance, and if your total income is below the exemption limit you can file Form 15G, or 15H at 60, to stop the deduction. Co-operative banks and post offices follow the same thresholds.

How much does the tax difference actually change the final corpus?

Take Rs 10,000 a month for 15 years. At 12% an equity SIP grows to about Rs 50.46 lakh on Rs 18 lakh invested. A recurring deposit at 7%, before any tax, reaches about Rs 31.88 lakh — a gap of roughly Rs 18.58 lakh. Tax then widens it further, since the deposit interest is taxed yearly at your slab while the SIP gain is taxed once at 12.5% above Rs 1.25 lakh. The FD's real advantage is certainty, not return.

💻

Free Developer REST API AvailableBuilding a fintech app or blog? Integrate our free, open-CORS JSON REST APIs for high performance calculations.

View API Docs →

Related calculators