SIP vs RD Calculator — Compare Returns Side by Side — India 2026
Compare SIP and Recurring Deposit returns over 5 10 15 and 20 years. See which gives better returns for your monthly savings.
SIP in equity mutual funds and bank RD are both monthly savings tools but deliver very different outcomes over time. Rs 5000/month for 20 years: SIP at 12% = Rs 49.96 lakh while RD at 7% = Rs 26.18 lakh. SIP gives Rs 23.78 lakh MORE but comes with short-term market volatility. The choice depends on your time horizon and risk tolerance.
SIP vs RD which gives more after 10 years?
Rs 10000/month for 10 years: SIP at 12% = Rs 23.23 lakh. RD at 7% = Rs 17.31 lakh. SIP gives Rs 5.92 lakh more. However SIP had periods of negative returns during those 10 years while RD gave steady guaranteed returns every quarter. The volatility is the price you pay for higher SIP returns.
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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 (Equity 12%) | 12% - 15% CAGR (long-term average) |
| RD Returns (Bank) | 6% - 7.5% (guaranteed) |
| Rs 5000/month for 20 yrs (SIP) | Rs 49.96 lakh |
| Rs 5000/month for 20 yrs (RD) | Rs 26.18 lakh |
Compare SIP and RD returns
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Use Calculator NowFrequently Asked Questions
SIP vs RD which gives more after 10 years?
Rs 10000/month for 10 years: SIP at 12% = Rs 23.23 lakh. RD at 7% = Rs 17.31 lakh. SIP gives Rs 5.92 lakh more. However SIP had periods of negative returns during those 10 years while RD gave steady guaranteed returns every quarter. The volatility is the price you pay for higher SIP returns.
When should I choose RD over SIP?
Choose RD when: your goal is less than 3 years away (car down payment wedding). You cannot tolerate any loss of principal. You need guaranteed returns for budgeting. You are retired and need predictable income. For all goals beyond 5 years SIP is mathematically superior due to equity compounding.
Can I do both SIP and RD?
Yes this is the ideal strategy. Use SIP for long-term goals (retirement children education) and RD for short-term goals (vacation emergency fund car). A common split: 70% in SIP for long-term wealth and 30% in RD/FD for near-term needs and emergency buffer.
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