SIP vs FD Break-Even Calculator India — CAGR Needed to Beat FD

Break-Even: SIP vs FD

At what return rate does a SIP in equity beat a bank FD after tax? This depends on your tenure and your tax slab. The answer might surprise you.

The Real Question Before Starting a SIP

Every investor asks: "Why not just keep money in FD?" A valid question. The answer is: for tenures under 3 years, an FD often wins. For 7+ years, equity SIP wins decisively — but only if the equity fund earns above the break-even CAGR. This calculator shows you that exact number.

Your Parameters

Monthly Investment (₹)

FD Interest Rate (%)

7.25%

6.5% SBI 7.25% HDFC 8.25% Small FC

Investment Period

10 yrs

Your Tax Slab

SIP Must Beat This CAGR to Win

—%

FD Post-Tax Corpus

—

At Break-Even CAGR

—

At 12% CAGR

—

Extra Wealth at 12%

—

Disclaimer: FD interest taxed at income slab rate. Equity MF LTCG above ₹1.25L taxed at 12.5% (Finance Act 2024 — verify current rates). Actual equity returns are not guaranteed. This calculator helps plan — it does not predict. ARN-309076.

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Eswari Guduru (ARN-309076) · Guduru Anantha Eswari Rajeswari · AMFI Registered Mutual Fund Distributor · Authorised Person — Kotak Securities Ltd (INZ000200137) · NSE AP AP0291573301 · Boduppal, Hyderabad 500092 · +91 79959 72796 · eswariguduru.com
All projections are for illustration only. Returns not guaranteed. Constant assumed rates — actual MF returns fluctuate. Not investment advice. Not a SEBI Registered Investment Adviser. Read all scheme documents before investing. Tax calculations, where applicable, use FY2026-27 slabs — consult a CA for personal advice.