Investment Summary

Monthly SIP Amount ₹100,000
Annual Return Rate (assumed) 12%
Investment Period 10 years (120 months)
Total Amount Invested ₹1,20,00,000
Estimated Wealth Gained ₹1,12,33,908
Maturity Value after 10 Years ₹2,32,33,908

Key Insight: You invest ₹1,20,00,000 over 10 years, but your money grows to ₹2,32,33,908. The extra ₹1,12,33,908 comes purely from compounding — your money earning returns on returns every month.

SIP Returns Across Different Time Periods

See how the same monthly investment grows exponentially over time:

Time Period Total Invested Wealth Gained Maturity Value
5 years ₹60,00,000 ₹22,48,637 ₹82,48,637
10 years ₹1,20,00,000 ₹1,12,33,908 ₹2,32,33,908
15 years ₹1,80,00,000 ₹3,24,57,600 ₹5,04,57,600
20 years ₹2,40,00,000 ₹7,59,14,792 ₹9,99,14,792
25 years ₹3,00,00,000 ₹15,97,63,509 ₹18,97,63,509
30 years ₹3,60,00,000 ₹31,69,91,377 ₹35,29,91,377

Year-Wise Growth Breakdown

Year Total Invested Returns Earned Portfolio Value
Year 1 ₹12,00,000 ₹80,933 ₹12,80,933
Year 2 ₹24,00,000 ₹3,24,320 ₹27,24,320
Year 3 ₹36,00,000 ₹7,50,765 ₹43,50,765
Year 4 ₹48,00,000 ₹13,83,483 ₹61,83,483
Year 5 ₹60,00,000 ₹22,48,637 ₹82,48,637
Year 6 ₹72,00,000 ₹33,75,703 ₹1,05,75,703
Year 7 ₹84,00,000 ₹47,97,900 ₹1,31,97,900
Year 8 ₹96,00,000 ₹65,52,657 ₹1,61,52,657
Year 9 ₹1,08,00,000 ₹86,82,151 ₹1,94,82,151
Year 10 ₹1,20,00,000 ₹1,12,33,908 ₹2,32,33,908

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Frequently Asked Questions

How much will ₹100,000 SIP give after 10 years?

At 12% annual returns, a monthly SIP of ₹100,000 grows to ₹2,32,33,908 in 10 years. You invest ₹1,20,00,000 and earn ₹1,12,33,908 as returns — a wealth gain of 94%.

Is SIP better than FD for long-term goals?

For 10+ year goals, SIP in equity mutual funds has historically outperformed FDs significantly. An FD at 7% would give you around ₹2,40,19,168 on the same ₹1,20,00,000 lump sum, vs SIP's potential ₹2,32,33,908 through regular investing.

What if returns are lower — say 10% instead of 12%?

At 10% annual returns, your ₹1,00,000/month SIP for 10 years would grow to ₹2,06,55,202. At 8% it would be ₹1,84,16,568. Starting early and staying invested matters more than chasing the exact return rate.

What is the best SIP amount to start with?

Start with what you can sustain consistently. Even ₹500/month builds the habit. The real power of SIP is rupee cost averaging — buying more units when markets fall, fewer when they rise. Increase your SIP by 10% every year (step-up SIP) to dramatically boost the final corpus.

How is SIP taxed in India?

Each SIP instalment is treated as a separate investment. For equity funds: gains held over 12 months are LTCG taxed at 10% above ₹1 lakh exemption. Gains under 12 months are STCG at 15%. For debt funds, all gains are taxed at your income slab rate.

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