FD vs Mutual Fund Calculator — After-Tax Comparison

Comparing FD and mutual fund interest rates directly misses the real difference: how and when each one actually gets taxed. We built a calculator that shows the after-tax answer.

Why Comparing the Advertised Rates Misses the Point

A 7% FD and a 12%-expected mutual fund look easy to compare on the surface — but they're taxed completely differently. FD interest is added to your income and taxed at your slab rate every single year, whether or not you touch the money. A mutual fund's equity gains are only taxed when you actually sell, and then at a flat long-term rate that's often lower than a high earner's slab rate. These structural differences can change which option actually nets you more.

What the Calculator Shows

• Your FD's actual after-tax value, using your real income tax slab
• Your mutual fund's after-tax value, using long-term capital gains treatment (12.5% above a ₹1.25L exemption, for holdings over 24 months)
• Both investments' real, inflation-adjusted return — sometimes revealing an FD's real return is barely positive, or even negative, once inflation is factored in

Why Your Tax Slab Changes the Answer

The exact same FD rate nets a meaningfully different after-tax return depending on whether you're in the 30% or 10% slab — since all of the interest gets taxed annually regardless of holding period. This is worth checking directly with your own numbers, not assuming the standard advertised rate is what you'll actually keep.

Try It Yourself

Set your actual FD rate, your realistic mutual fund return expectation, your holding period, and your income tax slab — the calculator handles the rest.