Debt Fund vs FD Calculator

Name: FD vs Mutual Fund Calculator
Author: Saifuddin

money

Both taxed at your slab rate, so the comparison comes down to the return

Estimates only, not financial advice. What you type stays on your device. Checked against sources on 23 Oct 2026.

Debt funds lost their indexation benefit for units bought on or after 1 April 2023: the whole gain is now taxed at your slab rate, exactly like fixed deposit interest. That removes the old tax argument and leaves two questions, what each one returns and how certain that return is. This page starts on a debt fund so you can see both after tax.

The two sides are not the same kind of number. The FD rate is what the bank has agreed to pay you. The fund return is an assumption you set below, not a promise from anyone, and a fund can end below what you put in.

What you would invest

How you would investOne fixed deposit against one investment in a fund.

Amount₹

₹10,000₹1,00,00,000

For how longyrs

1 year30 years

FD rate your bank quotes%

0% p.a.12% p.a.

Your assumption about the fund

Return you are assuming%

-10% a year20% a year

Nobody can promise this. Try a lower number and see what happens to the comparison.

Kind of fundBought on or after 1 April 2023, the whole gain is taxed at your slab rate however long you hold it.

Your income tax slabFD interest and debt fund gains are taxed at this rate, plus 4% cess.

ResultUpdates live

On these numbers, the mutual fund leaves you more by

₹1,19,562

₹1.20 L ·

After tax, over 5 years, on ₹5,00,000 put in. The fund figure depends entirely on the return you assumed.

Fixed depositrate agreed

₹6,42,684

Before tax: ₹7,07,389
Gain: ₹2,07,389
Tax: ₹64,705
Yearly return after tax: 5.15%

Debt fundreturn assumed

₹7,62,246

Before tax: ₹8,81,171
Gain: ₹3,81,171
Tax: ₹1,18,925
Yearly return after tax: 8.8%

Fixed depositMutual fund (assumed)What you put in

You put in₹5.00 L

FD after tax₹6.43 L

Fund after tax₹7.62 L

Interest from a deposit is taxed at your slab rate of 30%, plus 4% cess, in the year it is earned.

Debt fund bought on or after 2023-04-01: the whole gain is taxed at your slab rate of 30%, plus 4% cess, however long you hold it.

Surcharge is not applied: it starts above 50,00,000 of total income and this page does not ask for that. Exit loads, TDS timing and paying FD tax each year rather than at the end are also left out.

Estimates for information only, not financial advice. Capital gains rates in force from 23 Jul 2024, reviewed on 18 Oct 2026. Source: CBDT FAQ on the capital gains regime, Union Budget 2024-25, and the Income Tax Department help pages.

End of year	Put in so far	Fixed deposit	Mutual fund (assumed)	Difference
1	₹5,00,000	₹5,35,930	₹5,60,000	₹24,070
2	₹5,00,000	₹5,74,441	₹6,27,200	₹52,759
3	₹5,00,000	₹6,15,720	₹7,02,464	₹86,744
4	₹5,00,000	₹6,59,965	₹7,86,760	₹1,26,795
5	₹5,00,000	₹7,07,389	₹8,81,171	₹1,73,782
After tax at the end	₹5,00,000	₹6,42,684	₹7,62,246	₹1,19,562

Rates and rules read from the sources listed on this page (the earliest on 23 Oct 2026); they may have changed since.

How to compare a debt fund with an FD after tax

The page opens on a Debt fund with 5,00,000 for 5 years; change the Amount and "For how long" to yours.

Set the "FD rate your bank quotes" and the "Return you are assuming" for the debt fund.

Pick Your income tax slab: FD interest and debt fund gains are both taxed at it.

Read the two cards for the Gain, Tax and "Yearly return after tax" on each side.

How Debt Fund vs FD Calculator works

This page puts the same money into a fixed deposit and into a mutual fund for the same period, then takes the tax off both, so you compare what you would actually keep.

One side is not like the other

The FD rate is contractual: the bank prints it on the receipt and has to pay it. The fund return is an assumption you type in. Nobody can promise it, and a fund can end below what you put in. Treat the fund column as "what if", never as a forecast.

The steps, in plain words

FD, one deposit: maturity = amount × (1 + rate ÷ 4 ÷ 100) ^ (4 × years), because banks add interest to a cumulative deposit every quarter.
FD, monthly: this is a recurring deposit. Each instalment earns for the months left after it is paid, compounded quarterly.
Fund, one investment: value = amount × (1 + return ÷ 100) ^ years.
Fund, monthly: this is a SIP, compounded monthly at one twelfth of the yearly rate. Each instalment carries its own holding period, which decides how its gain is taxed.
FD tax: all the interest is your income, taxed at your slab rate plus 4% cess.
Equity fund tax: gains on units held more than twelve months are long-term, taxed at 12.5% above 1,25,000 a year; gains held twelve months or less are short-term, taxed at 20%. Cess of 4% on both.
Debt fund tax: a gain on a specified mutual fund bought on or after 1 April 2023 is taxed at your slab rate, whatever the holding period.

The rest of the article, and all 6 questions about FD vs Mutual Fund Calculator, are on the FD vs Mutual Fund Calculator page.

Frequently asked questions

Is a fixed deposit better than a mutual fund?

Deposits and funds answer different questions. A fixed deposit pays a rate the bank has promised, so the maturity amount is known in advance. A fund pays whatever the market gives, which can be more than you assumed or a loss. This page shows both after tax, but only the deposit figure is one anyone can promise.

How is FD interest taxed?

Interest from a deposit is income from other sources and is taxed at your slab rate, plus 4% cess, in the year it is earned. The bank deducts TDS as the interest is credited and the rest is settled in your return. There is no special lower rate and no exemption for the first slice of interest.

Are debt funds still better than FDs for tax?

No. For units bought on or after 1 April 2023 the whole gain on a specified mutual fund is taxed at your slab rate, however long you hold it, exactly like FD interest. The old indexation benefit is gone, so the comparison now comes down to the return and how certain it is.

Does this calculator promise the fund return?

No. The fund return is a figure you type in as an assumption, and the page says so next to it. Only the FD rate is contractual. Change the assumed return to a lower number and see what happens: that is the most useful thing this page does.

Sources

PIB, CBDT FAQs on the new capital gains regime (Union Budget 2024-25)Listed equity: short-term 15% to 20%, long-term 10% to 12.5%, exemption 1,25,000, for transfers from 23 Jul 2024
Income-tax Act, 2025 (Act 30 of 2025), Gazette of India, 21 Aug 2025Sections 196 and 198: 20% short-term, 12.5% long-term above 125000; specified mutual fund units bought from 1 Apr 2023 are short-term
Income Tax Department, slab tables for salaried individualsThe ₹1,25,000 exemption on long-term gains under section 112A

Last verified 23 October 2026.

Figures from PIB, CBDT FAQs on the new capital gains regime (Union Budget 2024-25) and 2 other sources listed above, read 23 October 2026. Built by Saifuddin, Omnikit.

Rates and rules change; check the source before you rely on a figure.

Still stuck? Ask about FD vs Mutual Fund Calculator and anybody who knows can answer. No account needed.

More ways to use FD vs Mutual Fund Calculator

Same job, other tools: FD Calculator for Senior Citizens – Senior citizen FD interest, monthly or quarterly, with the extra rate added · FD Quarterly Payout Calculator – Interest a fixed deposit pays every quarter, and in a year.

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End of year

Put in so far

Fixed deposit

Mutual fund (assumed)

Difference

₹5,00,000

₹5,35,930

₹5,60,000

₹24,070

₹5,00,000

₹5,74,441

₹6,27,200

₹52,759

₹5,00,000

₹6,15,720

₹7,02,464

₹86,744

₹5,00,000

₹6,59,965

₹7,86,760

₹1,26,795

₹5,00,000

₹7,07,389

₹8,81,171

₹1,73,782

After tax at the end

₹5,00,000

₹6,42,684

₹7,62,246

₹1,19,562

How to compare a debt fund with an FD after tax

The page opens on a Debt fund with 5,00,000 for 5 years; change the Amount and "For how long" to yours.

Set the "FD rate your bank quotes" and the "Return you are assuming" for the debt fund.

Pick Your income tax slab: FD interest and debt fund gains are both taxed at it.

Read the two cards for the Gain, Tax and "Yearly return after tax" on each side.

How Debt Fund vs FD Calculator works

This page puts the same money into a fixed deposit and into a mutual fund for the same period, then takes the tax off both, so you compare what you would actually keep.

One side is not like the other

The steps, in plain words

FD, one deposit: maturity = amount × (1 + rate ÷ 4 ÷ 100) ^ (4 × years), because banks add interest to a cumulative deposit every quarter.

FD, monthly: this is a recurring deposit. Each instalment earns for the months left after it is paid, compounded quarterly.

Fund, one investment: value = amount × (1 + return ÷ 100) ^ years.

Fund, monthly: this is a SIP, compounded monthly at one twelfth of the yearly rate. Each instalment carries its own holding period, which decides how its gain is taxed.

FD tax: all the interest is your income, taxed at your slab rate plus 4% cess.

Equity fund tax: gains on units held more than twelve months are long-term, taxed at 12.5% above 1,25,000 a year; gains held twelve months or less are short-term, taxed at 20%. Cess of 4% on both.

Debt fund tax: a gain on a specified mutual fund bought on or after 1 April 2023 is taxed at your slab rate, whatever the holding period.

The rest of the article, and all 6 questions about FD vs Mutual Fund Calculator, are on the FD vs Mutual Fund Calculator page.

Frequently asked questions

Is a fixed deposit better than a mutual fund?

How is FD interest taxed?

Are debt funds still better than FDs for tax?

Does this calculator promise the fund return?

Sources

PIB, CBDT FAQs on the new capital gains regime (Union Budget 2024-25)Listed equity: short-term 15% to 20%, long-term 10% to 12.5%, exemption 1,25,000, for transfers from 23 Jul 2024

Income-tax Act, 2025 (Act 30 of 2025), Gazette of India, 21 Aug 2025Sections 196 and 198: 20% short-term, 12.5% long-term above 125000; specified mutual fund units bought from 1 Apr 2023 are short-term

Income Tax Department, slab tables for salaried individualsThe ₹1,25,000 exemption on long-term gains under section 112A

Last verified 23 October 2026.

Figures from PIB, CBDT FAQs on the new capital gains regime (Union Budget 2024-25) and 2 other sources listed above, read 23 October 2026. Built by Saifuddin, Omnikit.

Rates and rules change; check the source before you rely on a figure.