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SIP vs FD Calculator

Compare putting the same monthly amount in a SIP or in a bank deposit, at the return and deposit rate you enter.

₹10,000 · ₹10,000
Illustrative rate. Actual returns vary and are not guaranteed.
Enter the rate your bank offers.

Difference at the end₹5,86,373

SIP value₹23,23,391
Deposit value₹17,37,017
Amount invested (both)₹12,00,000

How it works

SIP of P a month for n months at monthly return i = SIP return ÷ 12, invested at the start of each month:

SIP value = P × ((1 + i)n − 1) ÷ i × (1 + i)

Deposit route: each month's P earns the deposit rate f compounded quarterly for the k months it stays:

Deposit value = Σ P × (1 + f ÷ 4)k ÷ 3, for k = n down to 1

Difference = SIP value − Deposit value. A negative difference means the deposit ends higher.

Worked example

₹5,000 a month for 2 years, SIP at 12% and deposit at 7%.

  1. SIP: ₹5,000 × 27.243200 = ₹1,36,216.00
  2. Deposit: 24 monthly deposits compounded quarterly at 7% = ₹1,29,098.90
  3. Both put in ₹1,20,000; the SIP ends ₹7,117.09 higher at these rates

Frequently asked questions

What does this SIP vs FD calculator compare?

It takes the same amount every month and shows what it could grow to in a mutual fund SIP at the return you expect, and in a bank deposit at the fixed rate you enter, over the same period.

An FD takes one deposit. How is a monthly amount compared?

Each month's amount is treated as going into a bank deposit at your FD rate, compounded quarterly for the months it stays. This is how a recurring deposit works, and it lets the two routes be compared month for month.

Why does the SIP usually end higher?

Only because you entered a higher expected return for it. The SIP return is not guaranteed and can be lower than the deposit rate, or negative, in some periods. The deposit rate is fixed when you open the deposit.

Which is safer?

Bank deposits have a fixed rate and are generally considered lower risk; mutual fund values go up and down with the market. RBI's financial awareness messages describe this risk-and-return trade-off: higher expected returns usually come with higher risk.

Does this include tax?

No. Interest on deposits and gains on mutual funds are taxed differently, and the rules change. Check the current rules on the Income Tax Department website; the figures here are before tax.

What rate should I use for each?

For the deposit, use the rate your bank offers for the period. For the SIP, use a return you think is realistic for the fund type, and try a lower one too to see when the deposit comes out ahead.

Can I use both?

Yes. Many people keep money they need soon, or an emergency fund, in deposits and invest for long-term goals through SIPs. This comparison helps you see the trade-off for one amount.

About these results

Method and timing
SIP: start-of-month instalments compounding monthly at the return ÷ 12. Deposit: each month’s amount compounds quarterly at the deposit rate for the months it stays (the recurring deposit convention).
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Mutual fund investments are subject to market risks, read all scheme related documents carefully. Both rates are your inputs; the SIP return is not guaranteed and taxes are not included. For information only, not investment advice.