How Much Monthly SIP You Need to Start a Small Restaurant in 8–10 Years?

Starting a small restaurant is a dream for many aspiring entrepreneurs, but turning that dream into reality requires structured financial planning. One of the simplest ways to build the required corpus over time is through a Systematic Investment Plan (SIP). By investing a fixed amount every month, you can accumulate the capital you need over 8–10 years while benefiting from market returns.

Understanding the Cost of Opening a Small Restaurant

The cost of setting up a small restaurant varies depending on the city, format, and scale. Typically, the investment ranges between ₹20 lakh and ₹40 lakh for a modest dining space that includes interiors, kitchen setup, licenses, staffing, and initial working capital. Once you know the target amount, you can estimate the monthly SIP needed based on duration and expected rate of return.

Calculate the Required Investment

 If you want to build ₹20 lakh in 10 years, and you assume an expected return of 11%, you would need to invest around ₹10,000 per month. In this scenario, the total value of your investment after 10 years would touch the targeted ₹20 lakh, with the invested amount being roughly ₹12 lakh and the remaining amount accumulating through estimated returns.

If your target is ₹30 lakh in 8 years with a 12% expected return, you would need to invest about ₹18,000 per month. In this case, you would invest around ₹17 lakh during the tenure, and the rest would come from market-driven estimated returns.

If you aim for ₹40 lakh in 10 years at an expected rate of return of 10%, your SIP requirement increases to nearly ₹22,000 per month. Over the decade, your invested amount would be close to ₹26 lakh, and the remaining corpus would come from compounded returns.

Also Read: SIP for Down Payment vs Full Property Purchase – Which Goal Works Better?

Conclusion

Planning for a future restaurant becomes much simpler when you break it down into a monthly SIP. Using a SIP calculator helps you estimate the exact monthly investment needed based on your target amount, duration, and expected rate of return. With disciplined investing and realistic financial goals, you can confidently build the capital required to launch your own restaurant in 8–10 years.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a private 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 are subject to market risks, read all scheme-related documents carefully.