SIP vs FD Calculator

SIP vs FD Calculator: Which Investment is Right for You?

There are many options available in India to save and grow wealth among them two of them are very popular - SIP (Systematic Investment Plan) and FD (Fixed Deposit). But the big question is which one is better for you? To solve this problem, we have created SIP vs FD calculator. This calculator helps you compare between SIP and FD so that you can make the right decision. Let's understand it in simple terms.

                                                                                    

What Is SIP and How Does It Work?

A SIP (Systematic Investment Plan) is a simple investment plan in which you have to invest small amounts regularly (like monthly) into mutual funds. This allows your money to grow over time by compounding and market-linked returns.

Why SIP is popular:

• Flexible investment amounts
• Potential for higher returns
• Ideal for long-term goals
• Good for beginners who want to invest slowly

But SIP investment is risky, as it is market driven and returns can fluctuate. The return depends on how mutual fund performs.

What Is FD and How Does It Work?

FD (Fixed Deposit) is a traditional way of investment option in banks and BFCs. You have to invest a particular amount for a fixed time and earn fixed returns at fixed interest rates on it.

Why people love FD: 

• 100% capital safety
• Fixed, guaranteed returns
• Great for short-term saving
• No market-related risks

FD return are lower than SIP for long term investment.

Why Use Our SIP vs FD Calculator?

This tool will help in deciding whether to choose SIP or FD as it allows you to the following research

• Compare SIP vs FD for 5 years, 10 years, or any custom period
• See future value, total investment, and wealth gained
• Understand which investment suits your goals
• Visualize your returns with an easy chart

You just have to enter a few details like monthly SIP amount, expected return rate, FD principal, and time period. Then the calculator will show you ever thing in detail.

Let us now understand this with an example

Example:

 SIP vs FD for ₹5,000 Monthly or ₹90,000 FD for 15 Years

Let 

You invest ₹5,000 per month in SIP for 15 years with an expected annual return of 12%.
On the other hand, you invest ₹90,000 in a Fixed Deposit at 7% annual interest for the same period.

According to our calculator:

• SIP may grow to ₹25+ lakhs
• FD may grow to around ₹2.5 lakhs

That is a very large difference. SIP can potentially give 10x higher returns than FD over the long term. The only concern is that returns in SIP are market driven while in FD they are fix at a fixed rate.

Which one to choose SIP vs FD?

                                                                         
Criteria                                                                Risk                                                                 Returns       

SIP (Mutual Funds)                  Medium(market-driven)                         10-15% (potential)

FD (Fixed Deposit)                    Low (guaranteed)                                      5-7% (fixed)

Liquidity                                    Easy to withdraw anytime                       Usually locked-in

Time Period                              Long-term wealth                                    Short term safety

Now if you are looking for capital safety and stable returns, FD is better option for you. Otherwise if you are aiming for long-term growth and can handle some risk, SIP is a better option.

Use our SIP vs FD Calculator to see the exact difference for your own values and goals. 

Tax Benefits? 

• SIP Tax: SIPs in Equity Mutual Funds are taxed at 10% for gains above ₹1 lakh (LTCG).
• FD Tax: Interest from FD is fully taxable as per your income slab.

In terms of tax benefit SIP is more beneficial than FD for long term investment.

Conclusion

With the help of our SIP vs FD Calculator, you can clearly see the future value, wealth gained, and total investment that helps you decide what is best for you.

👉 Try the calculator now and make your money work smarter, not harder!