FREEDOM / WISE
Worked Example

How much corpus does a ₹15,000 monthly SIP build over 10 years at 11% CAGR?

Scenario

Anjali, age 35, mid-career marketing manager in Mumbai, ₹18 lakh annual income, married with one child, ₹70K monthly household expenses

Inputs

Years
10
Inflation %
6
Monthly sip INR
15000
Expected return %
11

Calculation

  1. 1.

    Total invested over tenure

    ₹15,000 × 120 months₹18.00 L

  2. 2.

    SIP future-value factor at given rate and tenure

    [((1+r/12)^n − 1)/(r/12)] × (1+r/12)218.99x

  3. 3.

    Final corpus

    ₹15,000 × 218.99 factor₹32.85 L

  4. 4.

    Wealth multiple on contributions

    ₹32,84,809 ÷ ₹18,00,0001.8x

Conclusion

₹15,000 SIP over 10 years builds approximately ₹0.33 crore — roughly 2× the principal invested through 11% compounding.

Tradeoffs

Assumes 11% steady CAGR; real Indian equity returns vary year-to-year. With 6% inflation, ₹0.33Cr in 10 years has purchasing power of roughly ₹0.18Cr in today's money. Step-up SIP (10% annual) typically adds 25-40% to terminal corpus.

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