Sip Calculator
You have ₹10,000 per month to save. Should you put it in a bank FD, a Recurring Deposit (RD), or a mutual fund SIP? This is the most fundamental question in Indian personal finance. Let's settle it with real numbers — including taxes.
Quick Overview: SIP vs FD vs RD
| Feature | SIP (Equity MF) | Recurring Deposit | Fixed Deposit |
|---|---|---|---|
| Returns | 10–15% CAGR | 6–6.5% | 6.5–7.5% |
| Returns Guaranteed? | No (market-linked) | Yes | Yes |
| Tax on Gains (30% slab) | 12.5% LTCG (equity) | 30% income tax | 30% income tax |
| Inflation Beating? | Yes (historically) | Barely | Barely |
| Liquidity | High (2-3 days) | Medium | Low (penalty on premature) |
| Best For | Long-term wealth | Short-term savings | Capital protection |
₹10,000/Month for 15 Years — The Real Numbers (After Tax, 20% Tax Bracket)
| Investment | Total Invested | Pre-Tax Corpus | Tax Paid | Post-Tax Corpus |
|---|---|---|---|---|
| SIP (12% CAGR) | ₹18 L | ₹50.45 L | ₹4.05 L (12.5% LTCG) | ₹46.4 L |
| Recurring Deposit (6.5%) | ₹18 L | ₹29.6 L | ₹2.32 L (20% slab) | ₹27.3 L |
| Fixed Deposit (7%) | ₹18 L (lump) | ₹49.7 L | ₹6.34 L (20% slab) | ₹43.4 L |
Winner: SIP by a massive margin. Even after paying 12.5% LTCG tax, equity SIP at 12% CAGR outperforms RD by ₹19+ lakhs over 15 years. And it beats even the lump-sum FD by ₹3 lakhs.
SIP vs RD vs FD Calculator ↓
🏁 3-Way Investment Comparison
SIP (12%)
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RD (6.5%)
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FD avg (7%)
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Pre-tax estimates. SIP Calculator →
When Should You Choose FD or RD Over SIP?
- Emergency fund: Keep 3–6 months expenses in FD/savings for liquidity
- Short-term goals (1–3 years): FD is safer; markets can be volatile in short periods
- Senior citizens: Senior Citizen FD rates are higher (7–8%), and capital safety is priority
- Conservative investors: FD is fine for those who can't tolerate any loss
Compare Your Options with Our Calculator ↓
Our free SIP calculator helps you model different scenarios. Toggle between SIP and Lumpsum for FD-like comparisons.
Open SIP Calculator →Frequently Asked Questions
Is SIP better than FD?
For long-term horizons (5+ years), SIP in equity mutual funds historically outperforms FD significantly. FD gives ~6.5-7% pre-tax returns; equity SIP has historically given 10-15% CAGR. Post-tax, equity SIP is far superior for wealth creation.
Is SIP better than RD?
Yes, over a 10+ year period, SIP almost always outperforms RD due to market-linked returns. RD returns (6-6.5%) are taxed as income, making post-tax returns as low as 4-5% for those in higher tax brackets.
Is FD or SIP safer?
FD is safer in the short term as returns are guaranteed. However, FD returns barely beat inflation after tax. SIP in equity carries short-term risk but provides inflation-beating growth over the long term.
Can I do both SIP and FD?
Yes, and this is actually recommended. Keep your emergency fund and short-term savings in FD, and invest for long-term goals (5+ years) via equity SIP. This gives you both security and growth.