A Systematic Investment Plan (SIP) enables investors to invest a fixed sum at regular intervals, allowing wealth creation through disciplined investing and compounding.
Estimating the time required to reach a specific financial goal is an important part of personal financial planning.
SIP calculators are commonly used to project potential outcomes by factoring in the investment amount, tenure and an assumed rate of return.
An illustration using a ₹7,500 monthly SIP highlights how these variables influence long-term results.
A SIP calculator estimates future investment value using three main inputs: the monthly contribution, investment duration and expected annual return.
The projections are indicative and based on historical performance assumptions. Actual outcomes may vary depending on market conditions and fund performance over time.
For a monthly investment of ₹7,500, selecting a 20-year investment horizon with an assumed annual return of 12% provides a representative scenario.
Under these assumptions, the investment value grows steadily over time, supported by the compounding effect.
Over 20 years:
The illustration suggests that a ₹7,500 monthly SIP, assuming a 12% annual return, may accumulate a corpus of nearly ₹75 lakh over a 20-year period.
Changes in the assumed rate of return, investment duration or contribution amount can alter the projected outcome. Investors may adjust these factors based on financial goals, risk tolerance and investment strategy.
Read More: How Long a ₹5,000 Monthly SIP May Take to Build a ₹20 Lakh Corpus?
SIP calculators serve as a useful planning tool to estimate how long it may take to achieve long-term financial targets. While this illustration indicates that a ₹7,500 monthly SIP could potentially grow to around ₹75 lakh over 20 years at a 12% assumed return, actual investment results depend on market performance and should be reviewed periodically.
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: Jan 1, 2026, 4:02 PM 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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