How much corpus does a ₹10,000 monthly SIP build over 20 years at 12% CAGR?
Scenario
Rohit, age 30, software professional in Pune, ₹12 lakh annual income, ₹50K monthly expenses, exploring this question for his financial plan
Inputs
- Years
- 20
- Inflation %
- 6
- Monthly sip INR
- 10000
- Expected return %
- 12
Calculation
- 1.
Total invested over tenure
₹10,000 × 240 months → ₹24.00 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
₹10,000 × 999.15 factor → ₹99.91 L
- 4.
Wealth multiple on contributions
₹99,91,479 ÷ ₹24,00,000 → 4.2x
Conclusion
₹10,000 SIP over 20 years builds approximately ₹1.00 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, ₹1.00Cr in 20 years has purchasing power of roughly ₹0.31Cr in today's money. Step-up SIP (10% annual) typically adds 25-40% to terminal corpus.