FREEDOM / WISE
Worked Example

How much corpus does a ₹10,000 monthly SIP build over 15 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
15
Inflation %
6
Monthly sip INR
10000
Expected return %
12

Calculation

  1. 1.

    Total invested over tenure

    ₹10,000 × 180 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) → 504.58x

  3. 3.

    Final corpus

    ₹10,000 × 504.58 factor → ₹50.46 L

  4. 4.

    Wealth multiple on contributions

    ₹50,45,760 ÷ ₹18,00,000 → 2.8x

Conclusion

₹10,000 SIP over 15 years builds approximately ₹0.50 crore — roughly 3× the principal invested through 12% compounding.

Tradeoffs

Assumes 12% steady CAGR; real Indian equity returns vary year-to-year. With 6% inflation, ₹0.50Cr in 15 years has purchasing power of roughly ₹0.21Cr in today's money. Step-up SIP (10% annual) typically adds 25-40% to terminal corpus.

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