Compare fixed deposit returns vs equity CAGR with tax and inflation adjustments. See the real wealth gap between FD and equity investing over 5, 10, or 20 years.
Compare fixed deposit returns vs equity CAGR with tax and inflation adjustments. See the real wealth gap between FD and equity investing over 5, 10, or 20 years.
SBI 5yr FD: ~7.0%
Nifty 50 avg ~12%
FD interest is taxed at slab
Fixed Deposit
₹8,44,965
After 30.0% income tax on interest
Equity Investment
₹14,36,934
After 12.5% LTCG (₹1.25L exemption)
Wealth Gap (Equity − FD)
+₹5,91,969
Real gap (after inflation): ₹3,30,552
Year-by-Year Growth
DETAILS
This section explains what the calculator does, what goes into the result, and how to interpret the output so you can apply it confidently.
This calculator turns a few key inputs into a clear output you can act on — a number that traders and investors commonly use for planning and decision-making.
Use it to compare scenarios quickly and to understand the trade-offs behind the final result.
Treat the output as a planning number. Small changes in inputs (time, rate, price, quantity, risk, or cashflows) can change the outcome meaningfully — so keep assumptions realistic.
If the tool returns multiple outputs, focus on the ones that drive decisions (e.g., net result, breakeven, or risk-adjusted value), not just the biggest number.
Principal ₹5,00,000, Years 10, FD 7.1%, Equity 12%, Inflation 6%, Tax slab 30%
Graphical view
Principal ₹20,00,000, Years 15, FD 7%, Equity 10%, Inflation 6%, Tax slab 20%
Graphical view
HOW IT WORKS
Input the investment amount and time horizon in years.
Enter FD interest rate, expected equity CAGR, inflation rate, and your income tax slab.
Get after-tax values for both FD and equity, real inflation-adjusted values, and the year-by-year growth comparison.
FAQ
FD interest is added to your total income and taxed at your marginal slab rate (up to 30%). Equity LTCG (if held >1 year) is taxed at flat 12.5% with ₹1.25 lakh annual exemption — making equity significantly more tax-efficient for long holding periods.
Nifty 50 has delivered approximately 12–14% CAGR over 20+ year periods. Nifty Midcap has averaged ~15–18%. For conservative comparison, use 10–12%. Past returns do not guarantee future performance.
Not always. FDs are ideal for emergency funds, short-term goals (<3 years), or capital you cannot afford to lose. Equity is appropriate for long-term goals where you can absorb short-term volatility.
No — dividends are excluded from this comparison for simplicity. Equity dividends are taxed at your slab rate. Index funds (Nifty 50 ETFs) typically reinvest dividends in the growth option, so NAV appreciation captures most of the return.
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