SIP vs FD Calculator
Compare Systematic Investment Plan returns with Fixed Deposit returns side by side. Free, privacy-first — inputs never leave your browser.
Details
SIP (Equity)
Wins₹50,45,760
Invested
₹18,00,000
Gains
₹32,45,760
FD / RD
₹32,59,002
Invested
₹18,00,000
Gains
₹14,59,002
Verdict
SIP produces ₹17,86,758 more over 15 years.
For estimation only. Not professional financial, tax, or legal advice. Consult a qualified advisor before making decisions. Full disclaimer.
SIP vs FD — which is better?
Fixed deposits guarantee a fixed return — currently 6-8% p.a. — but offer no protection against inflation and are fully taxable in your slab. Equity SIPs are volatile but have historically delivered 11-14% CAGR over 10+ year periods and enjoy favourable tax treatment (12.5% LTCG above ₹1.25L/yr).
Rule of thumb: if you need the money within 3 years, FD. If your horizon is 7+ years, SIP wins by a large margin.
Common questions about SIP vs FD
Is SIP better than FD for long-term goals?+
Yes, for horizons over 7 years. Equity SIPs have delivered 11%-13% CAGR over 15+ year windows in India, vs 6%-7% from FDs. On ₹10,000/month for 20 years: FD corpus ~₹49 lakh at 7%, equity SIP corpus ~₹99 lakh at 12%. SIP is volatile short-term but almost always wins long-term. FD wins for 1-3 year goals where market risk is unacceptable.
Is SIP safer than FD?+
No — FD is safer on principal (DICGC insures up to ₹5 lakh per bank). SIP returns are market-linked and can be negative in any given year. However, over 10+ years, equity SIPs in diversified funds have never returned negative in Indian history. FD safety comes at the cost of inflation erosion: 7% FD with 5% inflation and 30% tax gives real return below 0%.
How is SIP taxed vs FD?+
FD interest is fully taxed at slab rate annually (even if reinvested). TDS at 10% kicks in on interest above ₹40,000/year (₹50,000 for seniors). Equity SIP gains are taxed only on redemption: LTCG at 12.5% above ₹1.25 lakh/year if held 12+ months; STCG 20% otherwise. For a 30% slab taxpayer, a 7% FD has ~4.9% post-tax return; a 12% equity SIP has ~10.4% post-tax.
Can I lose money in SIP?+
Yes, in short rolling windows. 1-year SIP returns have ranged from -40% to +90%. 5-year SIP returns in Nifty 50 have been negative in only 3 out of 25 historical starting years. 10-year SIPs in Nifty have never been negative. The risk is redeeming at a bad time — solve with asset allocation, not by avoiding equity.
Which is better for tax-saving — ELSS SIP or tax-saving FD?+
ELSS SIP wins on all dimensions for most investors. Both qualify for 80C (old regime only) up to ₹1.5 lakh. ELSS has 3-year lock-in vs FD's 5-year. ELSS gains grow tax-favoured (12.5% LTCG); FD interest taxed at slab. Historical ELSS CAGR is ~13% vs ~7% for tax-saver FDs. Only reason to choose tax-saver FD: absolute principal safety.
How do I choose between SIP and FD for an emergency fund?+
Use FD (or a liquid fund) for emergency money. Emergency fund needs are short-term and non-negotiable: 3-6 months of expenses. Liquid funds give slightly higher return (7%-7.5%) with 1-2 day redemption; FDs in a sweep-in account are equally good. Do not put emergency fund in equity SIP — a market crash could coincide with the job loss or medical event the fund is meant for.