# SIP vs FD Calculator: After-tax Returns Compared > SIP vs FD calculator: compare an equity SIP with fixed deposits after tax, with FD interest taxed yearly at your slab and equity gains taxed only on sale. Source: https://trykosh.com/tools/sip-vs-fd-calculator Free tool - Investing # SIP vs FD calculator Compare an equity fund with a fixed deposit on what you actually keep after tax. Choose monthly investing or a lump sum, your slab, and a rate for each. Rules checked 25 October 2026Free - no sign-upRuns in your browser Equity fund ahead after tax by INR 6,47,681 on INR 12,00,000 invested over 10 years Fund, after tax**INR 21,92,969** FD, after tax**INR 15,45,287** Tax: fund vs FD**INR 1,30,422 vs INR 1,56,584** Side by side Equity fund Fixed deposit Invested INR 12,00,000 INR 12,00,000 Assumed return 12% 7% Value before tax INR 23,23,391 INR 17,01,871 When tax is paid Once, on redemption Every year, on interest Tax INR 1,30,422 INR 1,56,584 Value after tax INR 21,92,969 INR 15,45,287 Return is Not guaranteed Fixed by the bank FD interest is taxed at your 30% slab each year (plus cess), which we take out of the deposit. Equity gains are taxed once at exit: 12.5% on long-term gains above INR 1.25 lakh and 20% on short-term ones. Mutual fund investments are subject to market risks. Past returns don't guarantee future ones; the rate here is an assumption. ## Upload your statement and Kosh does this for you. Upload your statements and Kosh tracks every SIP, FD and deposit in one place, and shows how far you are from each goal. [Start free](/signup?via=tool-sip-vs-fd-calculator) ## How the SIP vs FD calculator works In monthly mode, the same amount goes into an equity fund SIP and into fixed deposits each month. In lump-sum mode, one amount goes into a fund and the same into one FD. Both run for the same number of years. The FD side compounds quarterly, the way banks pay interest. Its interest is taxable every year as it accrues, even if you don't receive it until maturity, so the calculator takes tax at your slab rate plus 4% cess out of the deposit at the end of each year. That yearly tax is what slows an FD down. The fund side grows at your assumed return and is taxed once, when you redeem at the end. For an equity fund, units held over 12 months are long-term: the first INR 1.25 lakh of gain a year is exempt and the rest is taxed at 12.5%. Units from the final 12 months of a SIP are short-term at 20%. Cess is added to both. The comparison is about returns, not risk. The FD's rate is fixed and deposits are insured up to INR 5 lakh per bank by DICGC; the fund's return is an assumption that may not happen, and its value can fall. ## Worked example: Harpreet weighs her options Harpreet, 35, in Chandigarh is in the 20% slab and can set aside INR 15,000 a month for 7 years, INR 12.6 lakh in all. At an assumed 12%, the equity SIP could be worth INR 19.01 lakh after paying INR 78,256 in tax at exit. Monthly FDs at 6.75% would leave INR 15.31 lakh after INR 71,167 of yearly tax. On these assumptions the fund comes out about INR 3.7 lakh ahead, in exchange for taking market risk. Equity fund ahead after tax by INR 3,70,447 on INR 12,60,000 invested over 7 years Fund, after tax**INR 19,01,429** FD, after tax**INR 15,30,982** Tax: fund vs FD**INR 78,256 vs INR 71,167** FD interest is taxed at your 20% slab each year (plus cess), which we take out of the deposit. Equity gains are taxed once at exit: 12.5% on long-term gains above INR 1.25 lakh and 20% on short-term ones. Mutual fund investments are subject to market risks. Past returns don't guarantee future ones; the rate here is an assumption. [Load this example into the calculator ->](?monthly=15000&years=7&fdRate=6.75&slab=20#calculator) ## Good to know - For money you'll need within 2 to 3 years, the comparison matters less than certainty: an equity fund can be down when you need to withdraw. - FD interest above INR 50,000 a year from one bank (INR 1 lakh for seniors) attracts 10% TDS. TDS isn't an extra tax, just an advance on it. - In the 30% slab the FD's yearly tax bites hardest. In the 0% or 5% slab the gap narrows, which is why FDs suit many retirees with low taxable income. - Senior citizens usually get 0.25% to 0.75% more on FDs. Enter your actual rate. ## Frequently asked questions Which is better, SIP or FD? They do different jobs. An FD gives a guaranteed rate and capital safety; an equity SIP aims for higher long-term growth with no guarantee and the risk of losses. Over long periods and higher tax slabs, equity has historically come out ahead after tax, but past returns don't guarantee future ones. How is FD interest taxed? It's added to your income and taxed at your slab rate every year as it accrues, even in a cumulative FD that pays out only at maturity. Banks deduct 10% TDS once your interest from them crosses INR 50,000 in a year (INR 1 lakh for seniors). How are SIP returns taxed? Only when you sell. For equity funds, gains on units held over 12 months are taxed at 12.5% above INR 1.25 lakh a year, and gains on units held 12 months or less at 20%, plus cess. Is an FD completely safe? Bank deposits are insured by DICGC up to INR 5 lakh per depositor per bank, covering principal and interest together. Amounts above that depend on the bank's health. ## Sources and assumptions - [Income Tax Department](https://www.incometax.gov.in/) - [Reserve Bank of India](https://www.rbi.org.in/) Rules and rates last checked on 25 October 2026. Results are estimates for planning and education, not tax, legal or investment advice. Kosh is an educational financial planning tool by Primedepth Labs. It is not a SEBI-registered investment adviser and does not offer personalised investment advice, hold your money or execute trades. Markets carry risk; read scheme documents carefully and consult a registered adviser before acting.