The SIP calculator example demonstrates how disciplined monthly investing over long periods can mathematically result in substantial corpus creation. In this case, a ₹9,760 monthly SIP maintained for 26 years is used to show how compounding affects the final accumulated value.
The projection indicates that the estimated corpus may exceed ₹2 crore over the specified duration if all assumptions hold constant. This example highlights the effect of time and consistency on long‑term investment accumulation.
The SIP calculation is based entirely on predefined mathematical inputs and does not guarantee actual future outcomes. The assumptions include a monthly SIP of ₹9,760, an investment horizon of 26 years, and an expected annual return of 12%.
Over this duration, the total invested amount is ₹30,45,120, while the estimated corpus reflected is approximately ₹2,09,94,854. The estimated returns component is ₹1,79,49,734, which illustrates how the majority of the corpus results from compounding over extended durations.
A Systematic Investment Plan works by investing a fixed amount irrespective of market conditions or volatility. During the first several years, the total value increases gradually because compounding has a limited time to exert influence.
As the investment continues, returns begin generating additional returns, causing growth to accelerate, particularly after 15 to 20 years. In this illustration, although only ₹30.45 lakh is invested over 26 years, the compounding effect contributes nearly ₹1.79 crore to the final figure.
The initial 5 to 7 years generally show modest corpus growth as contributions form the larger share of the accumulated value. Between years 10 and 15, compounding becomes more pronounced and begins contributing meaningfully to growth even though the SIP amount remains unchanged.
In the final decade, the corpus grows sharply, with annual gains often exceeding earlier total contributions. This phase accounts for the largest portion of the final estimated value in the SIP calculator result.
A monthly SIP of ₹9,760 may appear modest when viewed in isolation, but its impact becomes significant over long durations. Over 26 years, the SIP contributes 312 instalments, each compounding for different lengths of time.
Earlier instalments compound for the longest period and therefore have the greatest influence on long‑term outcomes. This structure demonstrates how extended time horizons play a crucial role in building a multi‑crore corpus using moderate monthly investments.
A ₹9,760 monthly SIP sustained over 26 years, based on an assumed annual return of 12%, can mathematically grow into approximately ₹2.09 crore. Out of this amount, ₹30.45 lakh represents total contributions, while nearly ₹1.79 crore arises from compounding over the long term.
The example highlights the substantial impact of time, consistency, and compound growth on investment accumulation. It serves as a clear demonstration of how moderate monthly investments can translate into significant long‑term corpus formation.
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.
Published on: Jan 21, 2026, 5:16 PM IST
Akshay Shivalkar
Akshay Shivalkar is a financial content specialist who strategises and creates SEO-optimised content on the stock market, mutual funds, and other investment products. With experience in fintech and mutual funds, he simplifies complex financial concepts to help investors make informed decisions through his writing.
Know MoreWe're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
