Worked Example
How much corpus does a ₹35,000 monthly SIP build over 35 years at 12% CAGR?
Scenario
High-earner targeting ₹100Cr wealth over 35 years
Inputs
- Years
- 35
- Inflation %
- 6
- Monthly sip INR
- 35000
- Expected return %
- 12
Calculation
- 1.
Total invested over tenure
₹35,000 × 420 months → ₹1.47 Cr
- 2.
SIP future-value factor at given rate and tenure
[((1+r/12)^n − 1)/(r/12)] × (1+r/12) → 6,495.27x
- 3.
Final corpus
₹35,000 × 6495.27 factor → ₹22.73 Cr
- 4.
Wealth multiple on contributions
₹22,73,34,417 ÷ ₹1,47,00,000 → 15.5x
Conclusion
₹35,000 SIP over 35 years builds approximately ₹22.73 crore — roughly 15× the principal invested through 12% compounding.
Tradeoffs
Assumes 12% steady CAGR; real Indian equity returns vary year-to-year. With 6% inflation, ₹22.73Cr in 35 years has purchasing power of roughly ₹2.96Cr in today's money. Step-up SIP (10% annual) typically adds 25-40% to terminal corpus.