Evaluate guaranteed-return FD against market-linked SIP assumptions with a clear breakdown of risk, return, and liquidity tradeoffs.
FD vs SIP Calculator
Compare fixed deposit (lump sum) with a systematic investment plan (SIP) at the same assumed rate. FD returns are guaranteed; SIP returns in reality depend on market performance.
Compare FD & SIP
Formulas
FD: A = P(1+r/n)^(nt). SIP: FV = P × [((1+r)^n - 1) / r] × (1+r) with r monthly.
SIP assumes a fixed monthly return for illustration. Actual mutual fund returns are market-dependent.
FAQs
Key Terms
- Maturity amount
- Final value received at deposit end: principal plus accumulated interest.
- Compounding
- Interest earned on both principal and previously earned interest.
- Annualized rate
- Interest rate quoted for one year; converted internally for period-wise calculations.
Benefits of This Calculator
- Compares guaranteed FD outcomes with assumed SIP returns in one view.
- Helps discuss risk-return trade-offs with family or advisor before investing.
- Shows scenario-based differences for short and long goal horizons.