How much SIP do you need for ₹50 lakh?

Short answerAt an illustrative 12% a year you need about ₹22,400 a month for ₹50 lakh in 10 years, ₹10,600 in 15 years and ₹5,500 in 20 years.

How much SIP for ₹50 lakh?

It depends on how long you invest. At an illustrative 12% a year, you need about ₹22,400 a month for 10 years and ₹10,600 for 15 years.

Time At 8% At 10% At 12% At 12% with 10% yearly raise
5 years ₹68,200 ₹64,800 ₹61,700 ₹51,600
7 years ₹44,800 ₹41,700 ₹38,900 ₹30,000
10 years ₹27,600 ₹24,900 ₹22,400 ₹15,300
15 years ₹14,800 ₹12,500 ₹10,600 ₹6,100
20 years ₹8,800 ₹7,000 ₹5,500 ₹2,700

All figures are rounded up to the next ₹100 and are before tax.

Why ₹50 lakh is a good first target

Many people find ₹1 crore too far away to feel real. ₹50 lakh is a smaller step, and it is also the halfway point. It is a good first milestone because you will reach it in about 12 years 7 months with a ₹15,000 SIP at 12%, which is much sooner than 17 years 7 months for the full crore.

What ₹50 lakh is not

It is a milestone, not the end. If your real goal is ₹1 crore, think of ₹50 lakh as the stage where growth starts to do more than you do. At that point, your balance at 12% grows by about ₹6,00,000 a year, which is more than a ₹20,000 SIP adds (₹2,40,000).

The path from ₹50 lakh to ₹1 crore

The second half is usually faster. At ₹20,000 a month and 12%, the first ₹50 lakh takes 10 years 9 months and the second ₹50 lakh takes 4 years 8 months more. That is the idea behind why the first crore is the hardest.

A ladder of goals at ₹15,000 a month

Here is how long a ₹15,000 SIP takes to reach each milestone at 12%.

Milestone Time at ₹15,000 a month, 12%
₹10 lakh 4 years 4 months
₹25 lakh 8 years 4 months
₹50 lakh 12 years 7 months
₹1 crore 17 years 7 months

Splitting the journey into steps makes it easier to keep going. ₹10 lakh is a first win. ₹25 lakh feels like real money. ₹50 lakh is the halfway point.

What ₹50 lakh can and cannot do

₹50 lakh can be a house deposit, a business start, a child's education fund or a big safety net. It is not enough, on its own, to live on for decades. If you spend 4% a year from it, that is about ₹2,00,000 a year, or ₹16,667 a month. That is a rough guide and not a rule. Plan for your own spending and take advice before you rely on it.

Examples by starting age

  • At 25, for ₹50 lakh by 35: ₹22,400 a month at 12%.
  • At 30, for ₹50 lakh by 45: ₹10,600 a month.
  • At 40, for ₹50 lakh by 55: ₹10,600 a month, or ₹12,500 if you plan at 10%.

Speeding it up

Three things shorten the time. A bigger SIP, a yearly raise and a lump sum. For ₹50 lakh in 15 years at 12%, a 10% yearly raise lowers the start from ₹10,600 to ₹6,100.

How to pick your plan

  1. Choose the year you want ₹50 lakh.
  2. Find the monthly amount in the table at the return you trust.
  3. If it is too high, add time or use a yearly raise.
  4. Keep going after you hit it, towards ₹1 crore.

Use the calculator for your own numbers.

Common questions

How much SIP for ₹50 lakh in 10 years?

About ₹22,400 a month at an illustrative 12%, or ₹24,900 at 10%.

How long will ₹10,000 a month take to reach ₹50 lakh?

About 15 years 5 months at 12%, or 16 years 10 months at 10%.

Is ₹50 lakh a good first goal?

Yes, for many people. It is a nearer milestone on the way to ₹1 crore, and it is when growth starts to add more than your SIP does.

About the author

Rohit Gyanchandani is a Chartered Accountant and the author of A Practical Guide to Build Your First Crore, which this website is based on.

See your own number

Put your monthly amount and years into the planner. It takes a minute and it is free.

Numbers use a steady yearly return for illustration only. Real returns move around, can be lower than shown, and can be negative. Mutual fund investments are subject to market risks. Read all scheme related documents carefully. Figures are before tax. This article is education, not investment advice or a recommendation of any scheme.

Keep reading