SIP Calculator: How Fast a ₹5,000 SIP Can Grow to a ₹1 Crore Corpus?

A ₹5,000 monthly SIP looks small on day one, but time and compounding can turn it into a serious long-term corpus. Below is a simple, numbers first view of how long it can take to approach ₹1 crore under different annualised return assumptions. This is for informational purposes only. 

Scenario 1: ₹5,000 SIP at 10% Annualised Return 

At a 10% annualised return assumption, the SIP journey is longer, but the compounding still does the heavy lifting over time. 

• Monthly SIP: ₹5,000
• Expected return: 10% annualised
• Time taken: 29 years
• Total value after 29 years: ₹1,02,59,022
• Invested amount: ₹17,40,000
• Estimated returns: ₹85,19,022 

What stands out here is the gap between what is invested and what the corpus becomes. The invested amount is ₹17.40 lakh, while the remainder is growth over time. 

Scenario 2: ₹5,000 SIP at 12% Annualised Return 

A small increase in annualised return can shorten the timeline meaningfully, because compounding accelerates faster in later years. 

• Monthly SIP: ₹5,000
• Expected return: 12% annualised
• Time taken: 26 years
• Total value after 26 years: ₹1,07,55,560
• Invested amount: ₹15,60,000
• Estimated returns: ₹91,95,560 

Here, the time required drops to 26 years, and the invested amount is lower than Scenario 1 because the horizon is shorter. Yet the final corpus is higher in your numbers. 

Scenario 3: ₹5,000 SIP at 15% Annualised Return 

At a 15% annualised return assumption, the compounding curve steepens further and the time to approach ₹1 crore reduces again. 

• Monthly SIP: ₹5,000
• Expected return: 15% annualised
• Time taken: 22 years
• Total value after 22 years: ₹1,03,53,295
• Invested amount: ₹13,20,000
• Estimated returns: ₹90,33,295 

This scenario highlights the strongest time advantage. The invested amount is ₹13.20 lakh, while the rest is growth, achieved over a shorter period compared with the other scenarios. The calculation is done using SIP Calculator. 

Read More: 30% Saving Rule and SIP Calculator: Targeting A ₹1.5 Crore Retirement Corpus! 

A Quick Comparison of the Three Scenarios 

• 10% annualised: 29 years to reach about ₹1,02,59,022
• 12% annualised: 26 years to reach about ₹1,07,55,560
• 15% annualised: 22 years to reach about ₹1,03,53,295 

These are illustration-based timelines using the figures provided and are meant only for informational understanding. 

Why a ₹5,000 SIP Can Reach ₹1 Crore Over Time? 

A Systematic Investment Plan works on a straightforward idea. You invest a fixed amount every month, and each contribution gets time to grow. The longer the period, the more the compounding effect begins to dominate the outcome. That is why the same ₹5,000 SIP can land at very different end values depending on return and time. 

Key Assumptions Used in This SIP Calculator Example 

To keep the illustration clean and comparable across scenarios, the following are assumed: 

• Monthly SIP amount is ₹5,000
• Returns are expressed as annualised returns
• The goal is to see roughly how long it can take to build a corpus close to ₹1 crore
• Figures shown are based on the three scenarios you provided, and are rounded as stated 

Conclusion 

A SIP calculator is a helpful tool to visualise how compounding can work across time. However, returns are not fixed year after year, and real world outcomes can differ from assumed annualised rates. Use such calculations as a planning reference, not as a certainty. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or 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.