SIP Calculator: How long will it take to build a ₹10 lakh fund with a ₹3,000 SIP? Understand the full calculation..
SIP Calculator: A monthly SIP of ₹3,000 can pave the way to building a corpus of ₹10 lakh over the long term. However, the time required to achieve this goal depends on the returns generated on the investment. Let us look at estimates based on annual returns of 10%, 12%, and 15% to understand how long it might take to reach the ₹10 lakh mark with a monthly SIP of ₹3,000.
How long to reach ₹10 lakh?
If you invest ₹3,000 per month, the goal of ₹10 lakh can be achieved in approximately 11 to 14 years, depending on the rate of return. Let us use calculations to understand the duration of this journey at different return rates.
Estimated Annual Return | Time to Reach ₹10 Lakh | Total Investment
10% | 13 years 7 months | ₹4.92 lakh
12% | 12 years 7 months | ₹4.54 lakh
15% | 11 years 5 months | ₹4.11 lakh
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₹10 lakh at 10% return
At an annual return of 10%, it may take approximately 13 years and 7 months to build a corpus of ₹10 lakh through a monthly SIP of ₹3,000. During this period, your total investment would be around ₹4.92 lakh, with the remainder of the amount generated through investment returns.
How long at a 12% return?
If the average annual return is 12%, the goal of ₹10 lakh can be achieved in about 12 years and 7 months. During this time, you would invest a total of approximately ₹4.54 lakh, while around ₹5.46 lakh would be generated through returns.
With a 15% return
Based on an estimated annual return of 15%, a corpus of ₹10 lakh can be built in approximately 11 years and 5 months with a monthly SIP of ₹3,000. Over this period, your total investment would be around ₹4.11 lakh. You would receive a return of approximately ₹5.89 lakh.
How to build a large fund with a small SIP?
A monthly SIP of ₹3,000 might seem like a small amount. However, continuing the investment over the long term allows you to benefit from compounding. This is why the accumulated investment fund grows rapidly over time.
However, SIP returns are linked to the market; therefore, they may vary—being higher or lower—depending on market performance.
Disclaimer: This content has been sourced and edited from Money Control. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
