A Systematic Investment Plan (SIP) allows investors to build wealth gradually by investing a fixed amount at regular intervals. Understanding how long it may take to accumulate a specific corpus is essential for planning financial goals.
Using a SIP calculator provides a clear estimate based on contribution amount, time horizon and expected annual returns. An illustration using a ₹5,000 monthly SIP helps demonstrate how these factors influence outcomes.
A SIP calculator generates projections using the monthly investment amount, the number of years invested and an assumed annual return rate.
These inputs help estimate the future value of the investment and the expected returns component. The tool is indicative and relies on past performance trends rather than guaranteed outcomes.
For a monthly contribution of ₹5,000, selecting a 14 year investment horizon and an expected annual return of 12% provides a sample outcome.
Based on these assumptions, the estimated future value of the investment increases gradually over time due to compounding.
Over 14 years:
The illustration indicates that a ₹5,000 monthly SIP, assuming a 12% annual return, may achieve the ₹20 lakh mark around the 14 year point.
Different return expectations or extended investment tenures can shift the timeline. Investors may adjust their SIP amount or duration based on risk appetite, return assumptions and financial objectives.
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A SIP calculator offers a practical method for estimating how long it may take to reach specific financial goals. While the illustration shows that a ₹5,000 SIP could potentially accumulate over ₹20 lakhs in roughly 14 years at a 12% assumed return, actual results depend on market performance.
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.
Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Dec 14, 2025, 9:00 AM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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