SIP Calculator: What a ₹5,000 SIP Can Do for Your Retirement?

Retirement planning often feels overwhelming, especially when the numbers seem large and the timeline long. Many people assume that building a meaningful retirement corpus requires hefty investments from day one. In reality, consistency matters more than size. 

A modest monthly SIP (Systematic Investment Plan) of just ₹5,000, started early and continued with discipline, can quietly grow into a substantial retirement fund. Let’s see how.

Magic of ₹5,000 SIP

Imagine you decide to invest ₹5,000 every month through a SIP with a long-term expected return of 12% per annum. You stay invested for 20 years, without stopping during market ups and downs.

Here’s how the numbers stack up:

• Monthly SIP: ₹5,000
• Investment Duration: 20 years
• Total Invested Amount: ₹12,00,000
• Estimated Returns: ₹37,95,740
• Total Corpus After 20 Years:₹49,95,740 (≈ ₹50 lakh)

What’s important here is that your actual contribution is only ₹12 lakh, while the remaining ~₹38 lakh comes from compounding, your money earning returns, and those returns earning returns again. Increasing the SIP amount over time with salary hikes can push this number significantly higher. In order to estimate the expected return for another time, you can use the SIP calculator to make an informed decision.

Also Read: SIP Calculator: How Long Will It Take to Build ₹2 Crore with Monthly SIPs?

Conclusion

A ₹5,000 SIP may look small today, but over 20 years it can grow into nearly ₹50 lakh, proving that retirement wealth is built through patience, consistency, and time, not sudden large investments. Starting early is your biggest advantage. 

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