SIP vs PPF Calculator 2026 — Mutual Fund SIP vs Public Provident Fund

Compare returns, tax advantages (EEE vs LTCG), and long-term compounding between Mutual Fund SIP and PPF

Investment Inputs

Annual Investment Amount

₹

Quick Presets:

₹500₹1.50 L

Investment Duration (Years)

Yrs

5 Yr30 Yrs

Expected Equity SIP Return (% p.a.)

5%25%

PPF Interest Rate (% p.a.)

5%10%

Other taxable income (yearly)

₹

₹0₹5.00 Cr

Tax regime

Net Surplus Wealth: +₹16.66 L

Over 15 years with ₹1.50 L/yr (₹12,500/mo), an Equity SIP generates an estimated ₹57.34 L post-tax vs ₹40.68 L in tax-free PPF.

📈 Equity Mutual Fund SIP: ₹57.34 L; @12% CAGR

Gross Maturity:: ₹63.07 L
LTCG Tax (s.112A):: -₹5.73 L
Net Wealth Gain:: +₹34.84 L

🛡️ Public Provident Fund (PPF): ₹40.68 L; @7.1% EEE

Tax Payable:: ₹0 (100% Tax-Free)
Sovereign Guarantee:: 100% RBI/Govt
Net Wealth Gain:: +₹18.18 L

Total Capital Invested: ₹22.50 L over 15 years.

15-Year Wealth Accumulation: Equity SIP vs PPF

SIP vs PPF after tax, with your numbers

Standard Formula

SIP: equity LTCG at 12.5% over ₹1.25L, on top of your other income, with surcharge and 4% cess. PPF: exempt at every stage (EEE).

Live Calculation (Plugging Your Values)

SIP after tax (S):₹57.34 L

PPF maturity (P):₹40.68 L

LTCG on the SIP (L):₹5.73 L

Difference (D):₹16.66 L

Substituted Equation:

SIP ₹57.34 L vs PPF ₹40.68 L, difference ₹16.66 L

After-tax difference:₹16.66 L

PPF is EEE — the contribution, the interest and the maturity are all exempt, so nothing is deducted at the end. Equity pays 12.5% LTCG on redemption above the ₹1.25 lakh annual exemption. This page works that tax out on top of the other income you enter, under the regime you pick: any unused basic exemption absorbs part of the gain first, surcharge (capped at 15%) applies once total income passes ₹50 lakh, and 4% cess is added. PPF carries sovereign guarantee and a 15-year lock-in; equity carries market risk and stays liquid.

References

How these numbers are checked →

SIP vs PPF FAQs

Is a SIP better than PPF for wealth creation?

For long-horizon growth, yes — equity SIPs have historically compounded at 12%–15% against PPF's 7.1%. But PPF is sovereign-backed, fully EEE tax-free, and never falls in value. Most Indian portfolios should hold both: PPF as the debt anchor, equity SIP as the growth engine.

Can I invest in both PPF and SIP together?

Yes, and it is the standard recommendation. PPF takes up to ₹1.5 lakh a year and covers your Section 80C deduction and fixed-income allocation; the equity SIP carries the growth. Neither has any restriction on holding the other.

Is PPF's tax-free status enough to beat an equity SIP?

No, not over long horizons. At the 30% slab (31.2% with cess), a taxable return has to be about 1.45 times PPF's tax-free 7.1% just to match it. A 12% equity SIP taxed at 12.5% LTCG still nets more over 15 years — but PPF wins on certainty, which matters for money you cannot afford to see fall.

Does PPF still make sense in the New Regime where 80C is gone?

Yes, but for a different reason. The New Regime, the default under section 115BAC, gives no 80C deduction, so PPF loses its entry-stage benefit. What survives is that the interest and maturity remain fully exempt, unlike an FD taxed yearly at slab rates. At the 30% slab, a taxable deposit would need to pay about 1.45 times PPF's tax-free 7.1% to match it. Keep it as the safe, debt part of a portfolio, not as a tax-saving instrument.

What happens if I miss a year's PPF contribution?

The account becomes dormant. No fresh deposits or loans are allowed until you revive it, though the existing balance keeps earning interest. To revive, pay Rs 500 for each missed year plus a Rs 50 default fee per year, at the post office or bank branch. Depositing the Rs 500 annual minimum before 31 March each year avoids all of this. For interest, deposit before the 5th of a month — interest is calculated on the lowest balance between the 5th and month end.

Can I take money out of PPF before 15 years?

Partly. A loan of up to 25% of the balance is available between the third and sixth financial year. From the seventh year you may make one partial withdrawal each year of up to 50% of the balance at the end of the fourth preceding year. Premature closure is allowed only after five years, and only for serious illness, higher education, or a change of residency status, with a 1% interest penalty. A SIP, by comparison, is redeemable any working day.

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