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SIP Investment: How Much to Invest Monthly to Reach ₹1 Crore? 10, 15, 20-Year SIP Calculation
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News18•22-09-2026, 20:39
SIP Investment: How Much to Invest Monthly to Reach ₹1 Crore? 10, 15, 20-Year SIP Calculation
- •SIP is an excellent way to accumulate a large sum over the long term by investing regularly with small amounts.
- •Assuming a 12% annual return, to reach ₹1 crore, one needs to invest approximately ₹45,100/month for 10 years, ₹21,200/month for 15 years, and ₹11,000/month for 20 years.
- •The longer the investment duration, the significantly lower the monthly SIP amount due to the power of compounding.
- •If the rate of return changes, the required SIP amount will also change; for example, 10% return requires more, 15% return requires less.
- •Mutual fund investments are subject to market risks, and past returns are not guaranteed; calculations are estimates, and inflation should also be considered for long-term goals.
Key Questions Answered
Assuming an average annual return of 12%, you would need to invest approximately ₹45,100 per month for 10 years, ₹21,200 per month for 15 years, and ₹11,000 per month for 20 years to build a ₹1 crore corpus.
A Step-up SIP allows you to start with a smaller amount, such as ₹8,000 or ₹10,000 initially, and increase your contribution every year as your income grows. This method helps lower the financial burden during the early stages of your long-term investment plan.
Inflation affects purchasing power, meaning the value of ₹1 crore after 15 or 20 years will not equal its current value. Therefore, for long-term objectives like retirement or education, it is better to calculate the exact future cost rather than blindly targeting ₹1 crore.
