Impact of 1%: what a small gap costs
Enter your SIP or lump sum, the years and the gap in return. See what it adds up to.
- SIP or lump sum
- Any gap
- Free, no sign-up
Make it tax-efficient
Where you invest changes how much tax you pay on the growth. Our experts fit your goals into your tax plan.
Questions people often ask
Do SIPs save tax?
Only ELSS funds count for 80C, in the old regime, up to ₹1.5 lakh a year with other 80C items.
How are equity fund gains taxed?
Held over a year: 12.5% on gains above ₹1.25 lakh a year. Under a year: 20%.
How a small gap grows
It's taken every year.
- Grow your money at the higher return.
- Grow it again at the lower one.
- The difference is what the gap costs.
Last reviewed 9 October 2026. The rules in this calculator come from these official sources.
- Investor education: how investments grow, and their risks Securities and Exchange Board of India
Common questions
Why does 1% matter so much?
It's taken every year from a growing amount, so the loss compounds. Over 20 years it can cost more than a tenth of your final value.
How much does 1% cost on a ₹10,000 SIP?
Over 20 years, 12% vs 11% a year, about ₹12.6 lakh.
What is an expense ratio?
The yearly fee a mutual fund charges, taken out of the fund's returns. You don't pay it separately.
Direct or regular plan?
Direct plans of the same fund have a lower expense ratio because no distributor commission is paid.
Is a lower fee always better?
For the same fund, yes. Between different funds, compare returns after fees, not fees alone.
