SIP of ₹5,000 Per Month for 10 Years
Investing ₹5,000 per month in mutual funds for 10 years at 12% expected return yields an estimated ₹11.62 Lakh. See invested capital and wealth growth. Projections are based on an illustrative 12% p.a. long-term historical equity CAGR. Mutual funds are subject to market risks.
Adjust Parameters
Amount automatically debited from your bank account each month.
Illustrative annual return (historical Indian equity CAGR: 12-14%).
Longer timeframes dramatically increase compound wealth accumulation.
Corpus after 10 Years (120 Months) at 12% p.a.
Invested Capital vs Estimated Returns
Total: ₹11,61,695| Category | Amount | Percentage |
|---|---|---|
| Total Invested Capital | ₹6,00,000 | 51.6% |
| Estimated Wealth Gained | ₹5,61,695 | 48.4% |
Return Rate Sensitivity (±2% to ±4%)
Mutual funds are market-linked instruments. Review portfolio growth across conservative and optimistic equity scenarios.
| Return Rate | Total Invested | Estimated Gains | Maturity Corpus | Difference |
|---|---|---|---|---|
| 8% | ₹6,00,000 | ₹3,20,828 | ₹9,20,828 | -₹2,40,867 |
| 10% | ₹6,00,000 | ₹4,32,760 | ₹10,32,760 | -₹1,28,935 |
| 12% (Current) | ₹6,00,000 | ₹5,61,695 | ₹11,61,695 | - |
| 14% | ₹6,00,000 | ₹7,10,457 | ₹13,10,457 | +₹1,48,762 |
| 16% | ₹6,00,000 | ₹8,82,358 | ₹14,82,358 | +₹3,20,663 |
Long-Term Compounding Horizons
Notice how wealth generation accelerates exponentially in years 15 through 30 as returns generate compounding returns.
| Horizon | Total Invested | Wealth Gained | Maturity Corpus | Growth Multiple |
|---|---|---|---|---|
| 5 Years | ₹3,00,000 | ₹1,12,432 | ₹4,12,432 | 1.37x |
| 10 Years (Current) | ₹6,00,000 | ₹5,61,695 | ₹11,61,695 | 1.94x |
| 15 Years | ₹9,00,000 | ₹16,22,880 | ₹25,22,880 | 2.8x |
| 20 Years | ₹12,00,000 | ₹37,95,740 | ₹49,95,740 | 4.16x |
| 25 Years | ₹15,00,000 | ₹79,88,175 | ₹94,88,175 | 6.33x |
| 30 Years | ₹18,00,000 | ₹1,58,49,569 | ₹1,76,49,569 | 9.81x |
Year-by-Year Wealth Progression
| Year | Cumulative Invested | Yearly Interest | Total Wealth Gained | Portfolio Balance |
|---|---|---|---|---|
| Year 1 | ₹60,000 | ₹4,047 | ₹4,047 | ₹64,047 |
| Year 2 | ₹1,20,000 | ₹12,169 | ₹16,216 | ₹1,36,216 |
| Year 3 | ₹1,80,000 | ₹21,322 | ₹37,538 | ₹2,17,538 |
| Year 4 | ₹2,40,000 | ₹31,636 | ₹69,174 | ₹3,09,174 |
| Year 5 | ₹3,00,000 | ₹43,258 | ₹1,12,432 | ₹4,12,432 |
| Year 6 | ₹3,60,000 | ₹56,353 | ₹1,68,785 | ₹5,28,785 |
| Year 7 | ₹4,20,000 | ₹71,110 | ₹2,39,895 | ₹6,59,895 |
| Year 8 | ₹4,80,000 | ₹87,738 | ₹3,27,633 | ₹8,07,633 |
| Year 9 | ₹5,40,000 | ₹1,06,475 | ₹4,34,108 | ₹9,74,108 |
| Year 10 | ₹6,00,000 | ₹1,27,587 | ₹5,61,695 | ₹11,61,695 |
By committing ₹5,000 systematically each month over 10 Years (120 Months), you accumulate an estimated corpus of ₹11,61,695. Notice that wealth gained (₹5,61,695) constitutes 48.4% of your final portfolio value, demonstrating how compound interest overtakes principal contributions over long horizons. Monthly rupee-cost averaging ensures that you automatically purchase more mutual fund units when markets dip and fewer units when markets rise, mitigating volatility risk compared to trying to time one-time market entry points. Extending this discipline can produce dramatic exponential results. As shown in our tenure comparison table, continuing the same ₹5,000 monthly deposit for an additional 5 years nearly doubles the total wealth created, because past investment gains themselves begin generating substantial compound returns.
How SIP Returns Are Calculated (Annuity Due Convention)
Transparent mathematical formulas and assumptions used across our financial engines.
Variables & Legend
₹5,000 credited each cycle
Annual return (12%) ÷ 12 ÷ 100
120 total installments
Step-by-Step Calculation
- Step 1: Expected Monthly Rate of Return (r):
r = (12% / 12) / 100 = 0.010000The expected annual compound rate is divided across 12 monthly compounding periods.
- Step 2: Number of Monthly Installments (n):
n = 10 Years × 12 = 120 InstallmentsTotal systematic contributions deposited over the complete investment horizon.
- Step 3: Annuity-Due Future Value Calculation:
FV = P × [((1 + r)^n - 1) / r] × (1 + r) = ₹11,61,695Because mutual fund SIPs deduct funds at the beginning of each installment cycle, each monthly payment earns interest for that initial month (Annuity Due factor).
Conventions & Assumptions
- Compounded monthly with payments credited at the start of each month (Annuity Due), matching standard mutual fund processing in India.
- Equity mutual funds do not offer guaranteed returns; calculations reflect mathematical compound projections based on the constant return rate entered.
- Expense ratios and applicable capital gains taxes (LTCG / STCG) are excluded from basic compound projections.
Frequently Asked Questions
Related Calculators & Scenarios
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