SIP vs FD Calculator
Compare equity SIP returns against Fixed Deposit (FD) compound returns with tax and inflation adjustments.
SIP vs FD Decision Engine
Compare long-term wealth creation between monthly Equity SIP and Fixed Deposits (FD) with compound interest.
âī¸ Investment Parameters
SIP generates -1% more wealth than FD over 15 years.
What is the SIP vs FD Calculator?
The SIP vs FD Decision Engine allows investors to compare monthly equity Systematic Investment Plans (SIP) against Fixed Deposits (FD).
While Fixed Deposits provide guaranteed returns with capital protection, inflation and slab-rate taxes significantly erode real wealth creation. Equity SIPs carry market risk but historically offer higher compounding returns (12%â15% CAGR), creating vastly superior long-term wealth.
How Does the SIP vs FD Calculator Work?
1. Enter Monthly SIP / FD Amount â Set monthly investment budget ($ or âš).
2. Set Expected Return Rates â Expected SIP CAGR (e.g. 12%) and FD Interest Rate (e.g. 7%).
3. Choose Investment Tenure â Select investment horizon (1 to 30 years).
4. View Inflation & Tax-Adjusted Wealth â See nominal maturity value, real inflation-adjusted wealth, and post-tax returns comparison.
Formula & Calculation Method
$$\text{SIP FV} = P \times \left( \frac{(1 + r)^n - 1}{r} \right) \times (1 + r)$$
$$\text{FD FV} = P_{\text{total}} \times \left(1 + \frac{r_{\text{fd}}}{4}\right)^{4t}$$
Example Calculation
Example: âš10,000/mo over 15 Years (12% SIP vs 7% FD)
- Total Invested: âš18,00,000 (âš18 Lakhs)
- FD Maturity: âš30,68,000 (Net Profit: âš12.68 Lakhs)
- SIP Maturity: âš50,45,000 (Net Profit: âš32.45 Lakhs)
- SIP Outperformance: +âš19.77 Lakhs (+64% higher wealth)!
Frequently Asked Questions
$$\text{SIP FV} = P \times \left( \frac{(1 + r)^n - 1}{r} \right) \times (1 + r)$$ $$\text{FD FV} = P_{\text{total}} \times \left(1 + \frac{r_{\text{fd}}}{4}\right)^{4t}$$
Disclaimer: This financial calculator is provided for educational and estimation purposes only. ProCalc is not a registered financial advisor or SEBI entity. Rates and tax rules may vary.