SIP vs FD Calculator
Compare returns between a Systematic Investment Plan (SIP) and a Fixed Deposit (FD).
After 10 years, a monthly SIP of ₹10,000 at 12% could grow to ₹23,23,391. The same total investment (₹12,00,000) in an FD at 7% would grow to ₹23,60,582.
Key Difference
The potential difference in wealth created is ₹37,191, in favor of the FD.
Why the Difference?
SIPs are market-linked and have the potential for higher returns through compounding in equity or debt markets, but they also carry market risk. FDs offer guaranteed, fixed returns and are much safer, but their growth potential is lower and may not beat inflation over the long term.
Example
Choosing between a 12% return SIP and a 7% FD over 20 years can result in a dramatically different outcome. The SIP's higher growth potential, fueled by compounding, often leads to a significantly larger corpus, which is why it's often preferred for long-term goals like retirement planning.
SIP Maturity
₹23,23,391
Returns: ₹11,23,391
FD Maturity
₹23,60,582
Returns: ₹11,60,582
Total amount invested in both cases: ₹12,00,000
Choosing Your Investment Path
Deciding between a Systematic Investment Plan (SIP) in mutual funds and a traditional Fixed Deposit (FD) can be tricky. Both have their own risk and return profiles. This calculator helps you visualize the potential difference in returns based on your inputs to make a more informed decision.