SIP Calculator: Want Rs 1 crore? Check monthly investment needed for 5, 10, 15, 20 years

Building a corpus of Rs 1 crore is a key financial milestone for many investors. Whether the goal is retirement planning, a child's higher education, buying a home or achieving financial independence, disciplined investing can help turn this target into reality.

One of the most popular ways to build long-term wealth is through a Systematic Investment Plan (SIP) in mutual funds. SIPs allow investors to invest a fixed amount regularly and benefit from the power of compounding over time.

The amount required to accumulate Rs 1 crore depends largely on the investment horizon. Investors who start early can reach the same goal with a much smaller monthly investment, as compounding gets more time to generate returns.

Assuming an annual return of 12 per cent, here's the monthly SIP needed to build a corpus of around Rs 1 crore in 5, 10, 15 and 20 years.

SIP for Rs 1 crore in 5 years

Monthly SIP: Rs 1,23,500
Investment period: 5 years
Expected return: 12 per cent per annum
Total investment: Rs 74,10,000
Estimated returns: Rs 26,06,296
Total corpus: Rs 1,00,16,296

A five-year investment horizon requires a significantly higher monthly contribution because compounding gets limited time to work. An investor would need to invest around Rs 1.24 lakh every month to build a corpus of about Rs 1 crore.

SIP for Rs 1 crore in 10 years

Monthly SIP: Rs 44,700
Investment period: 10 years
Expected return: 12 per cent per annum
Total investment: Rs 53,64,000
Estimated returns: Rs 46,50,404
Total corpus: Rs 1,00,14,404

Extending the investment horizon to 10 years substantially lowers the monthly SIP requirement. At the assumed return rate, a monthly investment of Rs 44,700 can help investors accumulate a corpus of approximately Rs 1 crore.

SIP for Rs 1 crore in 15 years

Monthly SIP: Rs 21,015
Investment period: 15 years
Expected return: 12 per cent per annum
Total investment: Rs 37,82,700
Estimated returns: Rs 62,18,998
Total corpus: Rs 1,00,01,698

A 15-year investment period highlights the benefits of long-term investing. Despite investing less than the amount required in the shorter-duration plans, investors can still achieve the Rs 1 crore target because compounding has more time to work.

SIP for Rs 1 crore in 20 years

Monthly SIP: Rs 10,900
Investment period: 20 years
Expected return: 12 per cent per annum
Total investment: Rs 26,16,000
Estimated returns: Rs 74,10,445
Total corpus: Rs 1,00,26,445

A 20-year investment horizon makes the Rs 1 crore goal far more achievable for many investors. With a monthly SIP of just Rs 10,900, investors can potentially build a seven-figure corpus while contributing only Rs 26.16 lakh from their own pocket over the entire period.

Disclaimer: The above calculations are illustrative and based on an assumed 12 per cent annual return. Actual returns may vary. This is not investment advice. Please do your own research or consult a financial adviser before investing.