SIP Calculator: Comparing SIP of ₹15,000 for 20 Years vs ₹20,000 for 15 Years

Many new investors wonder whether to start small and early or invest larger sums later. This example shows why time in the market is far more powerful than timing the market.

Let’s compare 2 investors, Aarav and Meera. Aarav invests ₹15,000/month for 20 years, while Meera starts late and invests ₹20,000/month for 15 years. Both contribute roughly ₹36 lakh in total. Yet, the end result is strikingly different.

Round 1: The Numbers Game

Assuming a 12% annual return on SIP investments in equity mutual funds:

Aarav earns ₹51 lakh more despite investing the same total amount.

The Magic of Compounding

Compounding is when your returns start earning their own returns. Aarav’s early start allows his investment to grow exponentially in later years, over 40% of his wealth is created in the last 5 years.

Meera’s late start costs her precious years of compounding. Even though she invests more later, time once lost cannot be recovered.

Can More Money Make Up for Lost Years?

Meera increases her SIP to ₹25,000/month for 15 years (total ₹45 lakh) to make up for lost time.

Even after investing ₹9 lakh more, Meera still ends up with ₹26 lakh less than Aarav, proving that time beats size when it comes to wealth creation.

Read More: SIP Calculator: ₹5,100 Monthly for 15 Years vs ₹11,000 for 7 Years – Which Gives Better Returns?

Why Starting Early Matters

Aarav’s money had more time to grow. Early investments allow your returns to multiply over the years, leading to exponential growth. Meera’s portfolio grew steadily but never matched Aarav’s because compounding favours patience, not larger sums.

Even small SIPs say ₹10,000/month for 20 years can build a much bigger corpus than ₹15,000/month for 15 years.

Many investors wait for the “right time” to start investing. But even experts struggle to time the market perfectly. Aarav simply invested regularly, regardless of market ups and downs, and that discipline paid off handsomely.

Conclusion

This case study makes one lesson crystal clear: the earlier you start, the more you gain. Aarav’s consistent, smaller SIP grew faster than Meera’s larger but delayed one.

Use the SIP Calculator to see how your monthly investments can grow over time and discover how compounding can boost your long-term wealth creation.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. 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 are subject to market risks, read all scheme-related documents carefully.