FD vs SIP Calculator
Should you invest in a fixed deposit or a mutual fund SIP? Compare returns, risk, and tax efficiency side by side.
Enter Your Values
Using shared profile · 3,500/mo · EUR — edit on Dashboard
Results update automatically as you change values.
What-If Scenarios
Results update instantlyCost Breakdown
Growth: Nominal vs Inflation-Adjusted
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After-Tax Final Value
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Side-by-Side Comparison
Bars show relative size · ✓ marks the better option- Final Value (pre-tax)
- €164,362
- After-Tax Value
- €145,053
- Inflation-Adjusted
- €107,933
- Real Return/yr
- 2.1%
- Tax Paid
- €19,309
- Risk Level
- Very Low
- Liquidity
- Low (penalty)
- Tax Efficiency
- Lower (income tax)
- Final Value (pre-tax)
- €193,616
- After-Tax Value
- €176,765
- Inflation-Adjusted
- €131,530
- Real Return/yr
- 3.8%
- Tax Paid
- €16,851
- Risk Level
- Medium
- Liquidity
- High
- Tax Efficiency
- Higher (LTCG)
| Factor | Fixed Deposit | Recommended SIP (Mutual Fund) |
|---|---|---|
| Final Value (pre-tax) | €164,362 | €193,616 |
| After-Tax Value | €145,053 | €176,765 |
| Inflation-Adjusted | €107,933 | €131,530 |
| Real Return/yr | 2.1% | 3.8% |
| Tax Paid | €19,309 | €16,851 |
| Risk Level | Very Low | Medium |
| Liquidity | Low (penalty) | High |
| Tax Efficiency | Lower (income tax) | Higher (LTCG) |
After taxes, SIP (Mutual Fund) gives you €31712 more over 10 years. FDs are taxed fully as income (30%), while SIPs may qualify for lower long-term capital gains rates. Inflation-adjusted, FDs earn 2.1%/yr real and SIPs earn 3.8%/yr real. If the FD real return is near zero or negative, your "safe" investment is actually losing purchasing power.
Scenario Analysis
How the outcome shifts if your assumptions turn out better or worse than expected.
SIP earns 5% more than expected
At stated rates
SIP earns 5% less than expected
Compare Scenarios
Pin up to 3 and see them side by sideSet your inputs, then Pin current to save this scenario. Pin a few variations to compare their scores and outcomes here.
What Moves the Needle Most
How much each factor changes your FD Final Value across its full range. Period has the biggest impact.
Focus your attention on Period — getting it right matters most. Factors lower down move the result less, so rough estimates there are fine.
Confidence & Assumptions
The result swings widely between best and worst cases — it depends heavily on assumptions that are hard to predict.
SIP After-Tax: €138,285 (worst) → €31,712 (expected) → €234,465 (best)
These are the estimates the result depends on. Adjust them (and the Advanced inputs) to match your real situation — the closer they are to reality, the more reliable your decision.
These estimates are for informational purposes only and do not constitute financial advice. Actual results may vary based on factors not captured in this calculator.
How This Calculator Works
What this calculator does
This calculator compares investing a lump sum in a fixed deposit (FD) with investing the same amount via monthly SIPs in a mutual fund, showing which gives higher returns.
How the calculation works
FDs compound at a fixed rate quarterly. SIPs invest monthly and each installment compounds at the expected market return. The calculator projects both and compares final values.
Formula
FD: A = P × (1 + r/4)^(4×t) SIP: FV = (P/n) × [((1 + r/12)^(n) - 1) / (r/12)] × (1 + r/12) n = total months, P = total amount
Sources & defaults
- Bank FD compounding conventions (often quarterly)
FD path uses fixed rate; SIP uses expected market return
- Historical equity risk premium literature
Long-run stock/SIP defaults ~7–12% nominal before fees/tax — not a forecast
Example
€100,000 for 10 years: FD at 5% = €164,701. SIP at 12% = €232,339. The SIP earns €67,638 more but carries market risk.
How to Use This Calculator
- 1Enter your numbers
Fill in the inputs for FD vs SIP Calculator. Defaults are realistic starting points — replace them with your actual figures.
- 2Understand the calculation
FDs compound at a fixed rate quarterly. SIPs invest monthly and each installment compounds at the expected market return. The calculator projects both and compares final values.
- 3Review results and scenarios
Check metrics, cost breakdown, comparison tables, and best / expected / worst scenarios. Use sliders to stress-test assumptions.
- 4Decide with the verdict
Read the decision engine recommendation and FAQ. Example: €100,000 for 10 years: FD at 5% = €164,701. SIP at 12% = €232,339. The SIP earns €67,638 more but carries market risk.
Factors to Consider
- FDs are safe but returns may not beat inflation
- SIPs have higher return potential but carry market risk
- FD interest is taxed at your income tax rate
- SIPs held for 1+ years may have lower tax on gains
- Your risk tolerance and timeline determine the right choice
Common Mistakes
- Comparing pre-tax FD returns with post-tax SIP returns
- Ignoring the risk difference between guaranteed and market returns
- Not considering that SIP invests gradually, not as a lump sum
- Forgetting that FD rates change at renewal
Frequently Asked Questions
Is FD safer than SIP?+
Yes. FDs are typically insured and offer guaranteed returns. SIPs are market-linked and can lose value, especially in the short term.
Why does SIP show higher returns?+
Equity markets historically return 10-12% long-term, while FDs offer 4-6%. The higher SIP return compensates for higher risk.
Can I do both FD and SIP?+
Yes! Many investors keep an FD for emergency/security and invest the rest via SIPs for growth. This balances safety and returns.
This calculator provides estimates for informational purposes only and does not constitute financial, investment, tax, or legal advice. Always consult a qualified professional before making important financial decisions.
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