SIP of ₹5,000 or ₹10,000 a Month: What It Can Grow To

A SIP of ₹5,000 a month for 20 years grows to an illustrative ₹49.96 lakh at an assumed 12% annual return, on ₹12 lakh invested; ₹10,000 a month grows to about ₹99.91 lakh. At 8% the same SIPs reach about ₹29.65 lakh and ₹59.29 lakh. These are mathematical projections, not promises: real mutual fund returns vary year to year and can be far lower, especially over short periods.

All figures below are illustrative, computed exactly with the formula shown, and ignore costs beyond what is built into the assumed return, taxes and exit loads.

The formula behind every number

A SIP instalment is invested at the start of each month, so the future value is an annuity due:

FV = P × [((1 + i)^n − 1) ÷ i] × (1 + i)

• P = monthly SIP amount
• i = assumed annual return ÷ 12
• n = number of monthly instalments

Worked example: ₹10,000 a month for 20 years at 12%

• i = 12% ÷ 12 = 1% = 0.01
• n = 20 × 12 = 240
• (1.01)^240 = 10.8926
• (10.8926 − 1) ÷ 0.01 = 989.26
• 989.26 × 1.01 = 999.15
• 999.15 × ₹10,000 = ₹99,91,479

Total invested is ₹10,000 × 240 = ₹24,00,000, so the illustrative gain is ₹75,91,479. More than three-quarters of the final value comes from compounding, and most of that arrives in the last few years. You can check any combination in the SIP calculator.

₹5,000 per month SIP: illustrative values

₹10,000 per month SIP: illustrative values

Two patterns stand out:

1. Time matters more than rate. At 12%, going from 20 to 25 years almost doubles the ₹10,000 SIP's value (₹99.91 lakh to ₹1.90 crore), while only ₹6 lakh more is invested.
2. The rate gap widens with time. Over 5 years, 8% vs 12% differs by about ₹85,000 on a ₹10,000 SIP. Over 25 years the gap is about ₹94 lakh.

Why use 8%, 10% and 12%?

These are round planning assumptions, not expected returns. Equity fund returns in India have been well above 12% in some periods and close to zero or negative in others, depending on start and end dates. Hybrid and debt funds usually return less, with smaller swings. Using a range shows how sensitive your goal is to returns.

Ranges also matter because SIP returns are sequence-dependent. Two investors with the same long-run average can end up with very different corpuses if one faces a market fall in the final years, when the pot is largest. That is one reason to shift gradually to lower-risk funds as a goal approaches.

Step-up SIP: raising the amount each year

Most people's income rises over time. A step-up SIP increases the instalment by a fixed percentage every year.

Illustrative example: start at ₹5,000 a month and increase it by 10% each year (₹5,500 in year 2, ₹6,050 in year 3, and so on) for 20 years at an assumed 12%. Each instalment is compounded monthly from its own start date.

The step-up plan reaches roughly the same value as a flat ₹10,000 SIP, but begins at half the monthly amount. The trade-off is a higher total investment (₹34.37 lakh vs ₹24 lakh) because the larger instalments come later and have less time to compound.

What these numbers are worth after inflation

A rupee in 20 years buys less than a rupee today. At an assumed 6% inflation, prices multiply by (1.06)^20 = 3.2071 over 20 years.

So a ₹1 crore corpus 20 years from now may feel more like ₹31 lakh does today. When planning for a goal such as retirement or a child's education, inflate the target first, then work out the SIP needed.

How much SIP do you need for ₹1 crore?

Rearranging the formula, the illustrative monthly SIP needed to reach ₹1 crore is:

Each figure is ₹1,00,00,000 divided by the FV factor for ₹1 a month; for example, at 12% for 20 years, ₹1 crore ÷ 999.15 = ₹10,009.

What reduces your actual result

• Expense ratio: a fund's TER is deducted daily from NAV. Direct plans cost less than regular plans; see direct vs regular mutual funds.
• Tax on redemption: as of October 2026, equity-fund long-term gains above ₹1.25 lakh a year are taxed at 12.5% (old Section 112A, now Section 198 of the Income-tax Act, 2025), and short-term gains at 20%. Debt-fund gains on units bought from April 2023 are taxed at slab rates. Details in capital gains tax on mutual funds.
• Stopping or pausing: missing even two or three years of instalments mid-way can cut the final value sharply.
• Exit loads: many equity funds charge about 1% if units are redeemed within a year.
• No glide path near the goal: if the money is needed in a fixed year, a market fall in the last two or three years can cut the corpus just when it is largest. Moving part of the corpus to debt or liquid funds as the goal approaches reduces that risk, at the cost of lower expected growth.

If you are new to SIPs, start with what is a SIP for how instalments, NAV and units work.

Key takeaways

• ₹5,000 a month for 20 years gives an illustrative ₹29.65 lakh at 8% and ₹49.96 lakh at 12%; ₹10,000 a month gives ₹59.29 lakh and ₹99.91 lakh.
• All projections use the annuity-due formula and are illustrative; actual mutual fund returns are not guaranteed.
• Extra years add more than an extra few percent of return; starting early is the biggest lever.
• A 10% annual step-up on a ₹5,000 SIP can roughly match a flat ₹10,000 SIP over 20 years in the illustration.
• Adjust for inflation: at 6%, ₹1 crore in 20 years is worth about ₹31 lakh in today's money.