SIP vs PPF Calculator — Which Builds More Wealth? — India 2026
Compare SIP and PPF returns over 15 20 and 30 years. Both qualify for 80C — see which gives better post-tax returns.
SIP in ELSS and PPF both qualify for Section 80C deduction but deliver very different results. Rs 1.5L/year for 15 years: SIP at 12% = Rs 59.31 lakh (taxable LTCG). PPF at 7.1% = Rs 40.68 lakh (completely tax-free). SIP gives 46% more but with market risk and some tax on gains. PPF gives guaranteed tax-free returns with zero risk.
SIP vs PPF which gives more in 20 years?
Rs 1.5L/year for 20 years: SIP at 12% = Rs 1.21 crore. PPF at 7.1% = Rs 66.28 lakh. SIP gives Rs 54.72 lakh MORE. After LTCG tax on SIP gains SIP still delivers approximately Rs 1.12 crore — significantly more than PPF. However PPF guarantees your Rs 66L while SIP value fluctuates.
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SIP Calculator
Understanding Your Investment Returns
This calculator projects your returns using compound interest, where your earnings generate their own earnings over time. The power of compounding means that even small regular investments can grow into substantial wealth over long periods. For example, investing just Rs 5,000 per month at 12% expected returns for 25 years can grow to over Rs 1 crore — of which only Rs 15 lakh is your own money and Rs 85 lakh is compounding returns. The key factors that determine your final corpus are: the amount invested, the rate of return, the duration of investment, and the frequency of compounding.
Important Considerations
Past returns do not guarantee future performance, especially for market-linked instruments like mutual funds and equities. The returns shown are estimates based on the rate you enter. Equity investments carry market risk but have historically delivered 12-15% CAGR over 15+ year periods in India. Fixed income options like PPF (7.1%) and FD (6-7.5%) offer lower but more predictable returns. Diversifying across asset classes — equity, debt, gold, and real estate — reduces overall portfolio risk while optimizing returns for your risk tolerance.
Key Information
| Parameter | Details |
|---|---|
| SIP Returns (ELSS at 12%) | 12% - 15% CAGR (historical) |
| PPF Returns | 7.1% (guaranteed tax-free) |
| SIP Lock-In (ELSS) | 3 years |
| PPF Lock-In | 15 years |
Frequently Asked Questions
SIP vs PPF which gives more in 20 years?
Rs 1.5L/year for 20 years: SIP at 12% = Rs 1.21 crore. PPF at 7.1% = Rs 66.28 lakh. SIP gives Rs 54.72 lakh MORE. After LTCG tax on SIP gains SIP still delivers approximately Rs 1.12 crore — significantly more than PPF. However PPF guarantees your Rs 66L while SIP value fluctuates.
Should I invest in both SIP and PPF?
Yes the ideal strategy: invest Rs 1.5L in ELSS SIP for 80C (get market returns with shortest 3-year lock-in) and separately invest in PPF for guaranteed tax-free returns. PPF does not count against your SIP allocation. Use PPF as the stable foundation and SIP as the growth engine of your portfolio.
Is PPF safer than SIP?
PPF is backed by the Government of India with guaranteed returns — zero risk of loss. SIP in equity mutual funds can lose 20-40% in a bad year. However over 10+ year periods SIP in diversified equity funds has never delivered negative returns historically. The risk of SIP decreases with time while returns increase.
What is compound interest and why does it matter?
Compound interest means you earn interest on your interest, not just your principal. Over long periods, this creates exponential growth — even small regular investments can grow into substantial wealth over 15-25 years.
Is SIP better than lumpsum investment?
SIP invests a fixed amount monthly, averaging out market volatility through rupee cost averaging. Lumpsum works better when markets are low. For most investors, SIP builds discipline and removes the need to time the market.
How much should I invest monthly to become a crorepati?
At 12% expected returns, a monthly SIP of Rs 5,000 for 30 years grows to approximately Rs 1.76 crore. Increasing your SIP by 10% annually makes the corpus even larger. Start early, stay consistent.
Are investment returns taxable?
PPF returns are tax-free. Equity mutual fund LTCG above Rs 1.25 lakh/year is taxed at 12.5%. FD interest is taxed at your slab rate. NPS offers an additional Rs 50,000 deduction under 80CCD(1B).
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Last updated: March 2026