SIP Calculator: How Long to Reach ₹1 Crore with ₹2,000, ₹5,000, and ₹10,000 SIP

Systematic Investment Plans (SIPs) allow investors to start with small amounts, such as ₹100, ₹250, or ₹500, and gradually increase their contributions. Many mutual fund houses now offer low-value SIPs starting at just ₹100. However, the average SIP investment in India remains above ₹2,000 per month.

Start Small and Increase Gradually

Not everyone can invest a large amount upfront, but the biggest advantage of SIPs is that you can begin with a small amount and increase it over time. This approach, known as the step-up method, helps investors build a larger corpus.

For example, starting with ₹500 and increasing it by 10% each year can result in an SIP amount of over ₹1,000 per month by the ninth year.

Below, we explore how long it takes to reach ₹1 crore with monthly SIP investments of ₹2,000, ₹5,000, and ₹10,000, assuming a 15% annual return and a 10% increase in SIP contributions each year. You can use the SIP Calculator to get an estimate of returns on your SIP investments. 

₹2,000 SIP (10% Increase Every Year)

If you start an SIP of ₹2,000 and increase it by 10% annually, your corpus can grow to ₹1.14 crore in 25 years at an average return of 15% per annum.

• Total investment: ₹23.60 lakh
• Interest earned: ₹90.83 lakh
• Total corpus: ₹1.14 crore

With a ₹2,000 SIP and a 10% annual increase, you can achieve your ₹1 crore target in 25 years.

₹5,000 SIP (10% Increase Every Year)

A ₹5,000 SIP with a 10% yearly increase can grow to ₹1.05 crore in 19 years at a 15% return.

• Total investment: ₹30.69 lakh
• Interest earned: ₹74.44 lakh
• Total corpus: ₹1.05 crore

With a ₹5,000 SIP and a 10% increase each year, you can reach ₹1 crore in 19 years.

₹10,000 SIP (10% Increase Every Year)

A ₹10,000 SIP that increases by 10% annually can grow to ₹1.02 crore in just 15 years with a 15% return.

• Total investment: ₹38.12 lakh
• Interest earned: ₹64.46 lakh
• Total corpus: ₹1.02 crore

If you invest ₹10,000 per month and increase it by 10% each year, you can build a ₹1 crore corpus in just 15 years.

Handling SIPs During Market Crashes

Many investors panic during market downturns and stop their SIPs, but this is actually can be the right time to continue investing.

• Market crashes allow you to buy more units at lower prices.
• In the long run, markets recover and grow, benefiting those who stay invested.
• Instead of stopping your SIP, continue investing to take advantage of lower prices.

Market corrections can work in your favour if you remain patient and stay committed to your investments.

SIP vs. Traditional Investment Plans

SIPs often outperform traditional investment options in the long run:

• Fixed Deposits (FDs): Offer 6-7% returns, which may not beat inflation.
• Public Provident Fund (PPF): A safe long-term option but offers only 7-8% returns.
• Mutual Fund SIPs: Can generate 12-15% returns and help build wealth over time.

SIP investments are one of the best options for long-term wealth creation as they offer higher returns and help beat inflation.

Conclusion

SIPs offer a disciplined way to build wealth over time. By starting small and increasing investments yearly, you can reach your financial goals faster while benefiting from market growth.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.