Why compare an IPO's return to a bank FD?

An FD is close to risk-free — comparing your IPO's annualized return against it shows whether the extra risk you took on actually paid off, or whether a guaranteed FD would have done just as well or better.

What index return should I use?

Use a broad benchmark relevant to your comparison — commonly the Nifty 50 or Sensex's annualized/CAGR return over a period matching your IPO holding period as closely as possible.

Does this account for tax differences between FDs and equity?

No — this compares raw annualized price/interest return only. FD interest is taxed annually at your slab rate; equity LTCG (after 12 months) is taxed at 12.5% with a ₹1.25 lakh annual exemption — a real difference not reflected in this comparison.

Is a higher IPO return always better than the benchmarks?

Not automatically — a higher raw return doesn't account for the risk taken (an FD is close to risk-free, an index is diversified, a single IPO is neither), or for tax and transaction costs. Use this as one input among several, not a standalone verdict.

What if my IPO hasn't listed yet?

Enter your best estimate of the current/expected price (e.g. from the GMP-to-Listing-Price Estimator) as the current price, and today's date's gap from allotment as the holding period, to see a projected comparison.

IPO Investment ROI vs FD/Index Calculator

A 20% IPO gain sounds great until you compare it to what a bank FD or a simple index fund would have returned over the same period. See your IPO's annualized return side by side with both benchmarks.

IPO Annualized Return

+30.00%

₹500 → ₹650 over 365 days, expressed as an annualized rate for fair comparison.

vs Bank FD

+23.00%

FD rate: +7.00%

vs Index

+18.00%

Index return: +12.00%

This compares raw price return only — it doesn't account for tax (see the Capital Gains Tax Calculator), STT/brokerage/DP charges (see the Net Proceeds Calculator), or FD interest being taxed annually at your slab rate regardless of holding period, unlike equity LTCG.

How the IPO Investment ROI vs FD/Index Calculator works

Your IPO's return is annualized using the same compounding formula as the IPO ROI Calculator — (current price ÷ issue price)^(365 ÷ holding days) − 1 — so a short holding period and a multi-year hold can be compared fairly. That annualized figure is then set directly against a bank FD's stated annual interest rate and a benchmark index's annualized return, both of which you enter yourself since neither is a fixed rate this tool can look up — FD rates vary by bank and tenure, and index returns vary by period and benchmark chosen.

This is a pre-tax, pre-charges price comparison only. FD interest is taxed annually at your income slab rate regardless of how long you hold the deposit, while equity gains get LTCG treatment (12.5%, ₹1.25 lakh exemption) only after a 12-month hold — a meaningfully different tax outcome the raw percentage comparison here doesn't capture. Use the Capital Gains Tax Calculator for the equity side of that comparison.

Disclaimer: This calculator is for educational purposes only and does not constitute investment advice. Always read the Red Herring Prospectus and verify current rates before applying for any IPO.

IPO Investment ROI vs FD/Index Calculator

How the IPO Investment ROI vs FD/Index Calculator works

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