How much corpus does a ₹12,500 monthly SIP build over 15 years at 7.1% 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
- 15
- Inflation %
- 6
- Monthly sip INR
- 12500
- Expected return %
- 7.1
Calculation
- 1.
Total invested over tenure
₹12,500 × 180 months → ₹22.50 L
- 2.
SIP future-value factor at given rate and tenure
[((1+r/12)^n − 1)/(r/12)] × (1+r/12) → 321.62x
- 3.
Final corpus
₹12,500 × 321.62 factor → ₹40.20 L
- 4.
Wealth multiple on contributions
₹40,20,301 ÷ ₹22,50,000 → 1.8x
Conclusion
₹12,500 SIP over 15 years builds approximately ₹0.40 crore — roughly 2× the principal invested through 7.1% compounding.
Tradeoffs
Assumes 7.1% steady CAGR; real Indian equity returns vary year-to-year. With 6% inflation, ₹0.40Cr in 15 years has purchasing power of roughly ₹0.17Cr in today's money. Step-up SIP (10% annual) typically adds 25-40% to terminal corpus.