SIP Calculator: One of the most popular and effective ways of building up your wealth, in India, is to invest in a Systematic Investment Plan (SIP). It helps you invest a specific amount monthly in mutual funds so that you can reach your long-term financial goals. But how long would it take to become crorepati only with ₹10,000 monthly SIP? This article lays it out in meticulous calculations and tips to help you start your journey to accumulate wealth.
SIP and the Magic of Compounding
SIP has a major benefit due to the power of compounding. New earnings from your investment are reinvested (earnings on compound interest) resulting in quicker growth.
For example, investing ₹10,000 every month in an equity mutual fund with a potential 12% annual return can help you achieve a ₹1 crore corpus much sooner than you would expect.
SIP Calculator: How Long it will take to get ₹1 crore?
Ans: You can accumulate ₹1 crore by looking at expected return rate and duration of investment. Here’s some math assuming various rates of return:
Average Return (%)
Years Required
Total Investment (₹)
Corpus (₹)
- 10%
- 20
- 24,00,000
- 1.05 crore
- 12%
- 18
- 21,60,000
- 1.03 crore
- 15%
- 15
- 18,00,000
- 1.07 crore
How Is This Calculated?
To calculate the future value (FV) of SIP investments, the formula is:
FV=P×((1+r)n−1r)×(1+r)FV = P \times \left( \frac{{(1 + r)^n – 1}}{r} \right) \times(1 + r)
Where:
P = Monthly Investment Amount (₹10,000)
r = Monthly return rate (Annual rate / 12)
n = Total months of investment (Years x 12)
So, using this formula, you can easily calculate how long will you take to achieve your ₹1 crore goal.
How to Reach ₹1 Crore: ₹10,000 SIP Steps
Begin as soon as possible: The sooner you begin, the longer the compounding will be in your favor.
Select the Appropriate Funds: In the long run, equity mutual funds, most notably diversified or index-mediated funds, have shown to provide greater returns.
Increase Your SIP Amount Gradually: Go for a Step-Up SIP, wherein each year you increase your SIP amount by 10-15% as your income grows. This can very well speed up the time it takes to accomplish your goal.
Be Committed: Adhere to the SIP plan through market ups and downs for optimal long-term growth.
Other Investment Options vs SIP
502396,49757 – Compared to fixed deposits, recurring deposits, or traditional savings plans, SIP provides higher returns. These traditional options give the average return of 6-8%, however, equity SIP can provide a return of 12-15% in the long run. For wealth creation in the long term, this gap makes SIP a hands-down winner.
Is There Any Risk in SIP?
SIPs are for mutual funds which are market-linked instruments. Therefore the returns vary with market performance. But historically talking the average returns from long-term investments in equity mutual funds have been 12-15% which reduces any risks in the long run.
Real-Life Example
Now, let’s say you’re 25 and you start a SIP of ₹10,000 each month. Investing only ₹21.6 lakh, by the age of 43, assuming 12% annualized return, you would have a net worth of ₹1 crore. Such is the power of disciplined investing and compounding.
Click here to know whether you Should Start Your SIP NOW?
The earlier you start, the closer you get to your financial goals. Insurance and SIP calculators allow you to plan your investments with more power and stay focused. In addition, beginning early relieves some of the financial strain of higher monthly payments.
Conclusion
Just Start ₹10,000 Monthly SIP and Become Crorepati. It’s done by selecting which funds to invest in, maintaining discipline and making the most of compounding — and it’s an easily achievable goal. You can customize your investment plan with an SIP calculator and start your journey toward achieving financial freedom.
The profit formula is simple – Start early, stay consistent, and allow compounding to do its wonders. Well, Are you ready to begin your SIP journey today?