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By staying invested for 10 years, you've earned 94% returns on your basic capital.
Compounding is a "back-loaded" game. The first 10 years build the foundation, but the final 5 years create the fortune. Don't stop when it gets boring.
Invest ₹15k for 15 yrs at 15% to reach ₹1 Crore.
A 10% annual step-up double your final wealth.
SIPs lower your cost during market crashes.
Estimated wealth projection at different monthly contribution levels (12% CAGR)
| Monthly SIP | 5 Years | 10 Years | 15 Years | 20 Years | 25 Years |
|---|---|---|---|---|---|
| ₹500 | ₹41,243 | ₹1.16 L | ₹2.52 L | ₹5.00 L | ₹9.49 L |
| ₹1,000 | ₹82,486 | ₹2.32 L | ₹5.05 L | ₹9.99 L | ₹18.98 L |
| ₹2,000 | ₹1.65 L | ₹4.65 L | ₹10.09 L | ₹19.98 L | ₹37.95 L |
| ₹5,000 | ₹4.12 L | ₹11.62 L | ₹25.23 L | ₹49.96 L | ₹94.88 L |
| ₹10,000 | ₹8.25 L | ₹23.23 L | ₹50.46 L | ₹99.91 L | ₹189.76 L |
* Calculations based on 12% annualized returns compounded monthly. Actual mutual fund returns may vary depending on market conditions and the specific fund's past performance and future strategy.
Compare the official interest rates dynamically between ICICI and SIP to analyze the monthly EMI and total interest differences.
The SIP calculator uses the future value of annuity formula below. A key point: the monthly rate must be calculated geometrically, not by simply dividing the annual rate by 12. For example, a 12% annual return is NOT 1%/month — the correct monthly rate is (1+0.12)^(1/12) - 1 = 0.9489%/month. Using 1%/month inflates results and is incorrect.
M = P × ({[1 + i]^n – 1} / i) × (1 + i)Where:
Amit, a 28-year-old software engineer, starts a SIP of ₹10,000 per month in a large-cap equity mutual fund expecting 12% p.a. returns.
• Total Invested: ₹18,00,000 (over 15 years)
• Returns Earned: ₹32,45,760
• Total Corpus: ₹50,45,760
Amt's money nearly tripled — he earned ₹32 lakh on ₹18 lakh invested, purely through compounding.
What if he had put the same ₹18L in a Bank FD at 7%? → Maturity: ~₹37 lakh. SIP wins by ₹13+ lakh.
Comparing ₹12 lakh invested over 10 years across three options (12% for equity, 7% for FD):
| Parameter | SIP (₹10K/mo) | Lumpsum (₹12L) | Bank FD (₹12L) |
|---|---|---|---|
| Total Investment | ₹12,00,000 | ₹12,00,000 | ₹12,00,000 |
| Maturity Value | ₹23,23,391 | ₹37,27,020 | ₹23,61,624 |
| Risk Level | Medium (Market) | High (Timing) | Zero |
| Tax on Gains | 12.5% LTCG (above ₹1.25L) | 12.5% LTCG | As per income slab |
| Timing Risk | Low (Rupee Avg) | High | None |
Calculations are estimates based on standard monthly compounding. Actual returns may vary based on market performance and fund selection.
Verified Contributor
I verified this calculation against the April 2026 Fiscal Cycle. If you have questions about the logic, reach out via the Author Page.
Professional-grade financial modeling engines for serious investors.
Historical data shows that SIP investors who stay disciplined during market crashes outperform those who try to 'time the bottom'. Rupee cost averaging is your secret weapon.
Increasing your SIP by just 10% every year as your salary increases can nearly double your wealth over 20 years. Always automate your step-ups.
Increasing your SIP by just 10% every year could potentially increase your final corpus by ~40% due to the 'Power of Topping up'.