How much corpus does a ₹20,000 monthly SIP build over 20 years at 12% 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
- 20
- Inflation %
- 6
- Monthly sip INR
- 20000
- Expected return %
- 12
Calculation
- 1.
Total invested over tenure
₹20,000 × 240 months → ₹48.00 L
- 2.
SIP future-value factor at given rate and tenure
[((1+r/12)^n − 1)/(r/12)] × (1+r/12) → 999.15x
- 3.
Final corpus
₹20,000 × 999.15 factor → ₹2.00 Cr
- 4.
Wealth multiple on contributions
₹1,99,82,958 ÷ ₹48,00,000 → 4.2x
Conclusion
₹20,000 SIP over 20 years builds approximately ₹2.00 crore — roughly 4× the principal invested through 12% compounding.
Tradeoffs
Assumes 12% steady CAGR; real Indian equity returns vary year-to-year. With 6% inflation, ₹2.00Cr in 20 years has purchasing power of roughly ₹0.62Cr in today's money. Step-up SIP (10% annual) typically adds 25-40% to terminal corpus.