PPF / SIP / RD Calculator
3-in-1 calculator to plan your investments. PPF for tax-free safety, SIP for long-term wealth, RD for short-term goals. Year-by-year breakdown for each.
Public Provident Fund
15-year lock-in. Tax-free interest. Government guaranteed. Max ₹1.5L per year, deductible u/s 80C.
EEE — Exempt at investment, accrual, and withdrawal. Contributions qualify u/s 80C (max 1.5L). Interest credited on 31 March each year, compounded annually.
Systematic Investment Plan
Monthly investment in mutual funds. Equity SIPs historically deliver 11-14% over the long term. Returns are not guaranteed.
Equity MF held > 12 months: LTCG @ 12.5% beyond ₹1.25L exempt (Budget 2024). ELSS funds also qualify u/s 80C with a 3-year lock-in. Debt MFs taxed at slab rate (no indexation post Apr 2023).
Recurring Deposit
Monthly fixed deposit with bank/post office. Compounded quarterly. Lower returns than SIP but capital-protected.
Interest is fully taxable at your slab rate. Bank deducts 10% TDS u/s 194A if interest crosses ₹50,000 p.a. (₹1,00,000 for senior citizens) for FY 2025-26 per Budget 2025.
Year-by-year breakdown
See exactly how your investment grows each year. Opening balance + contributions + interest = closing balance.
PPF vs SIP vs RD — which is right for you?
Each instrument serves a different goal. Most people should use a mix.
| PPF | SIP (Equity MF) | RD (Bank) | |
|---|---|---|---|
| Risk | Zero (govt backed) | Moderate to high (market) | Zero (DICGC up to ₹5L) |
| Expected returns | ~7.1% (FY25-26) | 10-14% (long term, equity) | ~6.5-7.5% |
| Lock-in | 15 years (partial w/d after 7th) | Open-ended (ELSS: 3 yrs) | Tenure (premature: penalty) |
| Tax on returns | Tax-free (EEE) | LTCG 12.5% above ₹1.25L | Slab rate (TDS @ 10%) |
| 80C deduction | Yes (max 1.5L p.a.) | ELSS only (3-yr lock-in) | No |
| Min · Max p.a. | ₹500 · ₹1,50,000 | ₹100/month · no max | ₹100/month · no max |
| Best for | Tax-saving + safety | Long-term wealth (10+ yr) | Short goals (1-5 yr) |
How to think about these three
Don’t pick one — layer them. PPF for the safety floor + 80C tax break, equity SIP for long-term wealth (retirement, kid’s college), RD for known short-term outflows (down payment in 3 years, wedding next year).
PPF: the boring brilliant one
15-year sovereign-backed product. 7.1% interest (FY 2025-26 Q1, set by Ministry of Finance). Compounded annually, credited 31 March. Up to ₹1.5L deductible u/s 80C. Maturity is fully tax-free.
Trick: deposit before 5th of every month — interest is calculated on minimum balance between 5th and last day of month. Late deposit = lose that month’s interest on new amount.
SIP: the wealth machine
Mutual fund SIPs use rupee-cost-averaging. You buy more units when market is down, fewer when up — smoothing volatility. Over 10+ years, equity index SIPs in India have historically delivered 11-14% CAGR.
Don’t time the market. Don’t pause SIP during crashes — that’s when you accumulate cheap units. Step up SIP 10% every year (most fund houses offer auto step-up).
RD: the predictable one
Bank/Post-office RD lets you fix a monthly deposit for 6-120 months at a contractual rate. Compounded quarterly. Capital protected (DICGC up to ₹5L per bank).
Returns are taxable at slab rate — if you’re in 30% bracket, post-tax return on a 7% RD is just 4.9%. For 5+ year horizon, debt funds or PPF beat RD on post-tax basis.
The 80C trap
Many people max 80C with PPF + ELSS + LIC + home loan principal. Verify total ≤ ₹1.5L. New tax regime gives no 80C benefit — if you’re on new regime, PPF is still fine for tax-free interest, but ELSS loses its tax-saving edge over a regular equity fund.
SIP step-up — small habit, huge difference
A ₹10,000 SIP at 12% for 20 yrs = ₹99.9L. Same SIP with 10% annual step-up = ₹1.84 Cr. Almost 2x by simply raising SIP 10% each year (which is what your salary likely does anyway).
Real returns — subtract inflation
India’s long-term inflation is ~5-6%. Real returns: PPF 7.1% − 5.5% = ~1.6%. RD 6.5% − 5.5% = ~1%. Equity SIP 12% − 5.5% = ~6.5%. For wealth (not safety), equity is the only realistic option over 15+ years.