SIP returns at 12% a year
| Monthly SIP | 1 yr | 3 yr | 5 yr | 10 yr | 15 yr | 20 yr |
|---|---|---|---|---|---|---|
| ₹500 | ₹6,383 | ₹21,540 | ₹40,552 | ₹1.12 lakh | ₹2.38 lakh | ₹4.6 lakh |
| ₹1,000 | ₹12,766 | ₹43,079 | ₹81,104 | ₹2.24 lakh | ₹4.76 lakh | ₹9.2 lakh |
| ₹2,000 | ₹25,533 | ₹86,159 | ₹1.62 lakh | ₹4.48 lakh | ₹9.52 lakh | ₹18.4 lakh |
| ₹3,000 | ₹38,299 | ₹1.29 lakh | ₹2.43 lakh | ₹6.72 lakh | ₹14.28 lakh | ₹27.6 lakh |
| ₹5,000 | ₹63,832 | ₹2.15 lakh | ₹4.06 lakh | ₹11.2 lakh | ₹23.8 lakh | ₹45.99 lakh |
| ₹10,000 | ₹1.28 lakh | ₹4.31 lakh | ₹8.11 lakh | ₹22.4 lakh | ₹47.59 lakh | ₹91.99 lakh |
| ₹25,000 | ₹3.19 lakh | ₹10.77 lakh | ₹20.28 lakh | ₹56.01 lakh | ₹1.19 crore | ₹2.3 crore |
12% is a common assumption for long-term equity funds, not a forecast. Over short periods returns can be much lower or negative. Change the rate in the SIP calculator to test a more cautious figure.
₹1,000, ₹2,000 and ₹5,000 SIP for 5 years
| Monthly SIP | Invested in 5 years | At 8% | At 10% | At 12% | At 15% |
|---|---|---|---|---|---|
| ₹1,000 | ₹60,000 | ₹73,414 | ₹77,172 | ₹81,104 | ₹87,342 |
| ₹2,000 | ₹1,20,000 | ₹1,46,828 | ₹1,54,343 | ₹1,62,207 | ₹1,74,684 |
| ₹5,000 | ₹3,00,000 | ₹3,67,070 | ₹3,85,859 | ₹4,05,518 | ₹4,36,710 |
A ₹1,000 SIP for 5 years means investing ₹60,000. At 12% it could be worth about ₹81,104, and at 8% about ₹73,414. The difference between the rates grows quickly with time, which is why the assumed return matters so much more over 20 years than over 5.
SIP needed for ₹10 lakh, ₹50 lakh or ₹1 crore
| Goal | In 5 years | In 10 years | In 15 years | In 20 years |
|---|---|---|---|---|
| ₹10 lakh | ₹12,330 | ₹4,464 | ₹2,102 | ₹1,088 |
| ₹25 lakh | ₹30,825 | ₹11,159 | ₹5,253 | ₹2,718 |
| ₹50 lakh | ₹61,650 | ₹22,318 | ₹10,506 | ₹5,436 |
| ₹1 crore | ₹1,23,300 | ₹44,636 | ₹21,012 | ₹10,872 |
Five years is short for a big goal: ₹50 lakh in 5 years needs about ₹61,650 a month even at 12%. Starting earlier brings the monthly amount down a lot. A yearly step-up helps more over long periods than short ones: over 5 years a 10% step-up lowers the starting SIP only to about ₹51,590. Try it in the step-up SIP calculator.
Daily, monthly or yearly SIP?
Some platforms offer daily SIPs, and some investors prefer one yearly payment. With the same ₹1,20,000 a year for 10 years at 12%:
| How you invest | Each payment | Value after 10 years |
|---|---|---|
| Daily (250 trading days a year) | about ₹480 | ₹22.3 lakh |
| Monthly | ₹10,000 | ₹22.4 lakh |
| Yearly, at the start of each year | ₹1,20,000 | ₹23.59 lakh |
The differences are small. Paying earlier in the year gives the money slightly longer to grow at an assumed steady return, which is why the yearly payment comes out a little ahead here. In real markets the result depends on how prices move: spreading purchases out averages the price you pay, while a yearly payment depends on the price on one day. Over long periods, daily and monthly SIPs have ended up with very similar returns. Pick the schedule that matches when you get paid.
How these numbers are worked out
Value = P × [((1 + i)^n − 1) ÷ i] × (1 + i)
P is the monthly SIP, n the number of installments and i the monthly return, worked out exactly from the yearly rate: (1.12)^(1/12) − 1, about 0.9489% a month. Some calculators use 12% ÷ 12 = 1% a month instead, which gives slightly higher figures. Neither includes fund expenses beyond what the return already reflects, taxes or inflation; the SIP calculator can show the value in today's money.