Investment Summary

Monthly SIP Amount ₹5,000
Annual Return Rate (assumed) 12%
Investment Period 10 years (120 months)
Total Amount Invested ₹6,00,000
Estimated Wealth Gained ₹5,61,695
Maturity Value after 10 Years ₹11,61,695

Key Insight: You invest ₹6,00,000 over 10 years, but your money grows to ₹11,61,695. The extra ₹5,61,695 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 ₹3,00,000 ₹1,12,432 ₹4,12,432
10 years ₹6,00,000 ₹5,61,695 ₹11,61,695
15 years ₹9,00,000 ₹16,22,880 ₹25,22,880
20 years ₹12,00,000 ₹37,95,740 ₹49,95,740
25 years ₹15,00,000 ₹79,88,175 ₹94,88,175
30 years ₹18,00,000 ₹1,58,49,569 ₹1,76,49,569

Year-Wise Growth Breakdown

Year Total Invested Returns Earned Portfolio Value
Year 1 ₹60,000 ₹4,047 ₹64,047
Year 2 ₹1,20,000 ₹16,216 ₹1,36,216
Year 3 ₹1,80,000 ₹37,538 ₹2,17,538
Year 4 ₹2,40,000 ₹69,174 ₹3,09,174
Year 5 ₹3,00,000 ₹1,12,432 ₹4,12,432
Year 6 ₹3,60,000 ₹1,68,785 ₹5,28,785
Year 7 ₹4,20,000 ₹2,39,895 ₹6,59,895
Year 8 ₹4,80,000 ₹3,27,633 ₹8,07,633
Year 9 ₹5,40,000 ₹4,34,108 ₹9,74,108
Year 10 ₹6,00,000 ₹5,61,695 ₹11,61,695

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Frequently Asked Questions

How much will ₹5,000 SIP give after 10 years?

At 12% annual returns, a monthly SIP of ₹5,000 grows to ₹11,61,695 in 10 years. You invest ₹6,00,000 and earn ₹5,61,695 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 ₹12,00,958 on the same ₹6,00,000 lump sum, vs SIP's potential ₹11,61,695 through regular investing.

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

At 10% annual returns, your ₹5,000/month SIP for 10 years would grow to ₹10,32,760. At 8% it would be ₹9,20,828. 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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