SIP for ₹1 crore: how much monthly SIP do you need?

How much SIP do you need for ₹1 crore?

It depends on two things: how long you invest, and what return you assume. Here is the monthly SIP for ₹1,00,00,000 at three different yearly returns. Pick the column you trust, and when in doubt, trust the lower one.

These are flat SIPs: the same amount every month. Figures are rounded up to the next ₹100.

What the table is telling you

Look down the 12% column. Going from 10 years to 20 years does not halve the amount. It cuts it to about a quarter. That is compounding: the longer money sits, the more of the work growth does for you.

Now look across. At 20 years, the gap between 8% and 12% is large. That gap is why we suggest planning with a cautious return. If you plan at 12% and get 8%, you end up well short.

A smaller start with a yearly raise

You do not have to start with the full flat amount. If you raise your SIP by 10% every year, you can begin lower. Here is the 12% case again:

The last column shows another thing: you put in far less of your own money for longer horizons. At 30 years you put in about ₹11,88,000 of your own money to reach ₹1,00,00,000. The rest is growth.

Rules of thumb

• At 12%, 10 years needs about ₹44,700 a month. 20 years needs about ₹10,900.
• Waiting 5 years before you start roughly doubles the monthly amount you need.
• A 10% yearly raise lets you start with roughly a third to a half less.

How the table is worked out

Each month your SIP goes in, and the whole balance grows by one month of the yearly return. We turn the yearly figure into a monthly one so the compounding is honest. Then we repeat for every month of the goal. The table asks one question backwards: what monthly amount lands exactly on ₹1,00,00,000 at the end?

The same maths runs the planner on the home page, so the two always agree. Figures are before tax and before any fund costs.

How much of the crore is your own money?

At 12% and a flat SIP, here is how the crore splits between what you put in and what growth adds.

Read the last two columns together. With 10 years, growth adds a little less than you put in. With 30 years, you put in about ₹11,88,000 and growth adds the rest of the crore. This is what people mean by the power of compounding. It is time, not cleverness.

SIP or one lump sum?

If you had a lump sum today instead of a monthly SIP, how much would it need to be to become ₹1,00,00,000? This table shows it.

At 12% for 20 years, about ₹10,36,700 invested today becomes a crore. Few people have that on day one, which is why a SIP is the usual route. If you do have a lump sum, it can sit alongside a SIP. See SIP vs lump sum for how to think about it.

Which return should you plan with?

12% is not a promise. Over long periods equity has done well in India, but some years are negative and some decades are slow. A cautious way to plan:

• Use 8% if you want a safe plan that you will beat if things go fine.
• Use 10% as a middle case.
• Use 12% only as the optimistic case.

Look at where you can still reach your goal. If the plan only works at 12%, add time or raise the SIP.

What the table leaves out

It leaves out tax and fund costs, and both reduce what you keep. It also assumes you never miss a month and never withdraw. Equity mutual fund gains are taxed, and the rules change, so check the current ones or ask a tax professional. It also assumes the return is steady, and real returns are not. A bad first few years hurts more than a bad last few years, so keep your cushion in place.

What to do with the table

Find your time in the first column. Pick the return you trust. If the amount is too high, give it more time or use a yearly raise. For a smaller start, see step up SIP for 1 crore. For smaller targets on the way, see how much SIP for 50 lakh.

How to use this

1. Find the time you can give it.
2. Pick the return column you trust.
3. If the amount is too high, add time or use a yearly raise.
4. Try your own numbers in the calculator.

Want the plan as a story instead of a table? Start with how to build your first 1 crore. Wondering if 10 years is realistic? Read how to become a crorepati in 10 years.