Pre-Tax vs Post-Tax SIP Returns: What You Actually Keep

Most SIP calculators show you one big final number and stop there. That number is before tax — which means it's not actually what ends up in your bank account. Here's the real gap, with real numbers.

A real example

₹15,000/month for 15 years in an equity fund, growing at 12% a year. This is the number most calculators would show you as the "result" — and the number that actually lands in your account after tax:

The gap is ₹6.17L — about 13% of the total gains. That's not a rounding error; it's a real amount that changes what you can actually do with the money.

Why this matters for planning

If you're saving toward a specific goal — a down payment, a child's education, retirement — and you plan around the pre-tax number, you'll come up short when you actually withdraw the money. Planning around the post-tax number instead means the goal you set is the goal you'll actually hit.

The size of the gap also depends on choices you can influence — how long you stay invested, and which type of fund you're in — both change how much tax you end up owing on the same gains.