SIP Calculator: Can a ₹21,000 Monthly SIP Help You Retire Early With a ₹5 Crore Corpus?

A Systematic Investment Plan (SIP) is one of the most effective ways to build long-term wealth and prepare for financial milestones such as retirement, children’s education or marriage. By investing a fixed amount consistently, investors benefit from compounding and market averaging, helping them accumulate a sizeable corpus over time.

With rising inflation and growing lifestyle expenses, many people are now calculating how much they must invest today to secure a stress-free retirement. Here’s how a ₹21,000 monthly SIP can help you achieve a retirement corpus of over ₹5 crore.

Using SIP To Help You Build Long-Term Wealth

SIPs allow you to invest small amounts regularly instead of making a lump-sum investment.

• Compounding: You earn returns not only on your contributions but also on accumulated gains.
• Rupee cost averaging: Helps reduce the impact of market volatility by investing at different price levels.
• Financial discipline: Automatic monthly investing ensures consistency.
• Long-term wealth creation: Ideal for retirement planning and high-value goals.

By combining discipline with time and returns, SIPs can help you reach large financial targets even with modest monthly amounts.

Example: Reaching ₹5 Crore With a ₹21,000 Monthly SIP

To understand how SIPs work in practice, let’s analyse the numbers.

Inputs for Calculation:

• Monthly SIP amount: ₹21,000
• Expected annual return: 12%
• Total duration: 27 years

According to the SIP calculator, here’s what you can expect:

This calculation shows that by the end of 27 years, a disciplined monthly SIP of ₹21,000 can help you accumulate over ₹5.11 crore.

Compounding Effect

The longer you stay invested, the more your money grows. In the early years, returns are small because your investment base is small.

After 10–12 years, compounding accelerates as your accumulated gains begin generating their own returns. Over 20+ years, compounding creates exponential growth, helping you reach big goals like a ₹5 crore retirement fund.

Should You Increase SIP Amounts Over Time?

To reach your retirement goals faster or build an even larger corpus, you may consider:

• SIP top-ups (increasing your SIP by 5–10% every year)
• Higher allocation to equity funds for long-term growth

Upgrading SIP amounts as your income grows can shorten your retirement timeline or boost your final corpus.

Read More: Best International Mutual Funds in India for Nov 2025.

Conclusion

A ₹21,000 monthly SIP at an expected 12% return can help you build a retirement corpus of over ₹5 crore in 27 years. With rising living costs, starting early and investing consistently is one of the smartest ways to secure financial independence.

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.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.