SIP vs FD Calculator (2026) – Compare Returns & Choose Best Investment

Trying to decide between Mutual Fund SIPs and Fixed Deposits? Compare potential maturity values, interest earned, and find out which investment instrument helps you beat inflation in 2026.

About | Comparison | Example | FAQs

Investment Strategy

Yr

Maturity Difference

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SIP generates more wealth than FD.

Investment Comparison (2026)

Mutual Fund SIP

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Total Invested: ₹0
Gain: ₹0

Bank FD

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Total Invested: ₹0
Interest: ₹0
SIP Growth FD Growth
SIP Value
FD Value

💡 Wealth Insight

Analyzing compounding impact...

SIP vs FD: Key Differences

Feature Mutual Fund SIP Fixed Deposit (FD)
Returns Market-linked (High) Fixed Interest
Risk Profile Moderate / Market Risk Low / Bank Guaranteed
Liquidity High (T+2 Days) Medium (Exit Penalty)
Taxation LTCG / STCG Taxed at Income Slab
Inflation Beats Inflation Often below Inflation

Comparison Logic

SIP FV = P × [((1 + r)ⁿ - 1) / r] × (1 + r)

SIP: Standard monthly compounding annuity formula.

FD: Assumes the same cash flow as SIP (investing monthly * 12 at the start of each year) for a fair comparison.

Real Value: Calculated by subtracting the inflation rate from the nominal return rate.

Comparison Example (₹5k SIP)

If you invest ₹5,000 per month for 10 years:
  • Total Investment: ₹6,00,000
  • SIP Value (12%): ₹11,61,695
  • FD Value (7%): ₹8,68,916
  • Difference: ₹2,92,779 (SIP wins)

SIP vs FD: Which is Better for You?

Understanding the difference between a Systematic Investment Plan (SIP) and a Fixed Deposit (FD) is the first step toward smart financial planning. A SIP involves investing in Mutual Funds, where returns are market-linked but offer significant growth over 5-10 years. An FD, on the other hand, provides guaranteed returns with capital safety, making it ideal for risk-averse investors or emergency funds. Browse all tools on our Financial Calculators page.

While the SIP Calculator highlights the power of compounding, the FD Calculator ensures predictability. In 2026, many Indian investors use a hybrid approach—keeping stable assets in FDs and growth assets in SIPs.

Growth vs Safety: Analyzing the Numbers

Historical data in India suggests that Equity SIPs deliver 12-15% CAGR over 7+ years, significantly outperforming the 6-8% typical of Fixed Deposits. However, market volatility means SIPs can be in the red for short durations. FDs never lose principal value, which is their biggest strength.

For those looking to buy a house or plan retirement, SIP is mathematically superior. For those needing money within 1-3 years, FD is the safer bet. You can track your total portfolio using our Net Worth Calculator or check your monthly loan burden with the EMI Calculator.

Related Personal Finance Tools

SIP Calc

FD Calc

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EMI Calc

Net Worth

Inflation

Frequently Asked Questions

SIP vs FD which is better?
SIP is better for long-term growth (5+ years) due to compounding. FD is superior for emergency savings and capital safety.
Is SIP riskier than FD?
Yes, SIPs are market-linked and can experience negative returns temporarily. FDs are fixed and insured up to ₹5 Lakhs by DICGC.
Can SIP give guaranteed returns?
No, mutual fund investments are subject to market risks. Only FDs and Post Office schemes offer guaranteed interest.
FD vs mutual fund returns?
Historically, equity mutual funds deliver 11-14% CAGR, whereas bank FDs currently offer around 6.5-7.5% in India.
Which beats inflation?
Equity SIPs have a better track record of providing "Alpha" (returns above inflation), while FD returns often barely cover inflation after tax.
SIP for beginners?
Index Fund SIPs are excellent for beginners as they provide diversified exposure to India's top 50 companies with low costs.
FD safety vs SIP growth?
If your goal is protecting capital for a need next year, use FD. If your goal is retirement 15 years away, use SIP.

Final Verdict

• SIP allows for market-linked wealth creation through Rupee Cost Averaging.

• FD offers capital preservation and fixed income for conservative horizons.

• Always account for the impact of Inflation on your future purchasing power.

• Check your effective tax on FD interest using our Income Tax Calculator.