FD vs SIP Calculator
Compare a fixed deposit against a mutual fund SIP after tax, with FD interest taxed at your income slab and equity gains at the lower long-term capital gains rate.
| Fixed deposit | Mutual fund SIP | |
|---|---|---|
| You invest | ₹18.00 lakh | ₹18.00 lakh |
| Value before tax | ₹31.88 lakh | ₹50.46 lakh |
| Tax | ₹4.16 lakh (at 30% slab) | ₹3.90 lakh (LTCG 12.5%) |
| Value after tax | ₹27.72 lakh | ₹46.56 lakh |
The big difference is not only the higher expected return. FD interest is added to your income and taxed at your full slab, here 30%. Long-term equity gains are taxed at just 12.5%, and the first ₹1.25 lakh of gains each year is exempt. Both the return and the tax treatment favour the SIP over long periods.
A fixed deposit is far safer: its value does not fall, while an equity SIP can drop in any given year. Use an FD for money you need soon or cannot risk, and a SIP for long-term goals where you can ride out the swings.
Educational estimate. It applies tax once at maturity for simplicity; real FD interest is taxed each year, and equity gains can be managed across years. Rates and returns are assumptions, not guarantees. Not investment advice.