What monthly SIP does a 42-year-old with ₹70 lakh existing corpus need to reach ₹10 crore at 60?
Scenario
A 42-year-old has ₹70 lakh existing investment corpus and 18 years until target retirement at 60; how much fresh SIP is needed to reach a ₹10 crore target?
Inputs
- Current age
- 42
- Retirement age
- 60
- Target corpus INR
- 10,00,00,000
- Assumed return %
- 12
- Current corpus INR
- 70,00,000
Calculation
- 1.
Future value of existing ₹70L at 12% over 18 years
₹70L × (1.12)^18 → ₹5.39 Cr
- 2.
Gap to fill with fresh SIP
₹10 Cr − ₹5.39 Cr → ₹4.61 Cr
- 3.
SIP-FV factor at 12% over 18 years
((1.01)^216 − 1) ÷ 0.01 × 1.01 → 712x
- 4.
Monthly SIP needed
₹4.61 Cr ÷ 712 → ₹64,750
Conclusion
₹64,750/month SIP for 18 years closes the gap. The existing corpus does roughly half the work; the fresh contributions handle the other half. Far more manageable than the ₹1.37L/month a starting-from-zero 42-year-old would need.
Tradeoffs
Existing corpus assumed to stay 100% invested at 12%. Drawdown years require either continued contributions through them or revised target. Without the ₹70L head start, this same 42-year-old would need ₹1.37 lakh/month — illustrating why even small amounts in your 20s-30s matter so much.