SIP Calculator Guide: How much to invest per month for 1 Crore Corpus?

Why 1 crore

A ₹1 crore goal is the classic wealth milestone for long-term investors in India because it balances ambition with feasibility. With disciplined SIPs in equity mutual funds and realistic return expectations, most investors can hit this mark across a 15–25 year horizon. The key is to match your SIP amount to your time horizon and expected return, then stick to the plan through market cycles.

SIP basics

A Systematic Investment Plan (SIP) invests a fixed amount at regular intervals (usually monthly) into a mutual fund, compounding over time.
SIPs leverage rupee-cost averaging, which lowers average purchase cost by buying more units when markets dip.
Over long horizons, equity SIPs historically beat inflation and fixed-income returns, but they come with volatility. The reward for staying invested is compounding.

SIP formula

Most SIP calculators use the future value of an annuity due (contributions at the beginning of each month) to estimate the corpus.

Future value of a SIP after $n$ months, monthly rate $r$ , monthly SIP $P$ :

$F V = P \times (r ( 1 + r ) ^{n} - 1) \times (1 + r)$

To find the required monthly SIP for a target corpus $F V$ :

$P = ( r ( 1 + r ) ^{n} - 1 ) \times ( 1 + r ) F V$

Where $r = 12 annual return$ and $n = years \times 12$ .
Using annuity due aligns with how many SIPs are executed (start of period). If your tool assumes end-of-month investments (ordinary annuity), omit the $(1 + r)$ multiplier.

How much monthly

Here are approximate monthly SIPs required to reach ₹1 crore, assuming contributions at the beginning of each month:

20 years, 12% p.a.: about ₹10,000 per month.
15 years, 12% p.a.: about ₹19,800 per month.
10 years, 12% p.a.: about ₹43,000 per month.
20 years, 10% p.a.: about ₹13,100 per month.
20 years, 14% p.a.: about ₹7,600 per month.
25 years, 12% p.a.: about ₹5,300 per month.

These are rounded and for illustration. Your actual experience will vary based on fund returns, costs, taxes, and SIP execution date.

Key assumptions

Expected return: Equity funds can deliver 10–14% annualized over long horizons, but returns are not guaranteed and are lumpy.
Compounding: Assumes monthly compounding and contributions at the start of the month.
Costs: Expense ratios and tracking errors are implicitly baked into your net fund returns; higher costs lower net returns.
Taxes: Long-term capital gains tax reduces your take-home corpus if you redeem above exemption limits. Plan with a small buffer.

Step-up SIP

A step-up SIP increases your monthly contribution every year (e.g., 10% increase annually), keeping your initial SIP affordable while still reaching big goals.

Future value of a growing annuity (annual step-up), approximate annual model:

$F V = PMT \times r - g ( 1 + r ) ^{n} - ( 1 + g ) ^{n}$

Where $PMT$ is the first-year annual contribution, $r$ is annual return, $g$ is annual SIP growth, $n$ is years. For monthly step-ups, use a calculator; the annual formula offers a reasonable estimate.

Approximate starting monthly SIPs (10% annual step-up, 12% returns):

10 years: start near ₹33,000 per month.
15 years: start near ₹12,500 per month.
20 years: start near ₹5,700 per month.

The step-up approach sharply reduces the initial monthly burden versus a flat SIP, especially over longer durations.

Inflation impact

Your ₹1 crore target may not stretch as far in the future. If inflation averages 6% a year:

Real value today of ₹1 crore received in 20 years:

$Today’s value = ( 1 + 0.06 ) ^{20} 1 , 00 , 00 , 000 \approx ₹31 lakh$

To get ₹1 crore in today’s purchasing power after 20 years, future target should be:

$Future target = 1, 00, 00, 000 \times (1 + 0.06)^{20} \approx ₹3.2 crore$

At 12% p.a., 20 years, reaching ₹3.2 crore needs roughly 3.2 times the 1-crore SIP, i.e., about ₹32,000/month (instead of ₹10,000). Always decide whether your goal is in nominal or inflation-adjusted terms.

Tax and costs

Long-Term Capital Gains (equity): Gains above the exemption limit are taxed at 10% without indexation. This subtly lowers the effective CAGR.
Expense ratio: Higher expense ratios reduce net returns. Favor cost-efficient funds with solid processes.
Exit loads: Mostly negligible for long-term SIPs, but check fund terms.
Rebalancing tax drag: If you shift between assets, consider tax implications; SIP into a balanced asset mix minimizes reactive switching.

Pick return rate

Choosing a realistic return rate is critical for accurate SIP planning:

Conservative: 10% p.a. for large-cap–heavy or conservative allocation.
Moderate: 12% p.a. for diversified equity funds over 15–25 years.
Aggressive: 14% p.a. for small/mid-cap exposure, with higher volatility.

Use long-term rolling returns of your chosen category as a guide, not recent performance. If unsure, plan with 10–12% and review annually.

Scenarios table

A quick comparison of required monthly SIPs to reach ₹1 crore under different tenures and return assumptions. Assumes monthly contributions at the beginning of each month (annuity due).

Tenure	Return p.a.	Monthly SIP (₹)	Total Invested (₹)	Corpus at Goal (₹)	Notes
10 years	10%	48,360	58,03,200	1,00,00,000	Short horizon needs higher SIP
10 years	12%	43,050	51,66,000	1,00,00,000	Typical equity SIP case
10 years	14%	37,736	45,28,320	1,00,00,000	Aggressive return assumption
12 years	10%	35,875	51,66,000	1,00,00,000	Longer horizon helps
12 years	12%	31,092	44,77,248	1,00,00,000	Balanced plan
12 years	14%	26,370	37,97,280	1,00,00,000	Higher risk tolerance
15 years	10%	23,952	43,11,360	1,00,00,000	Conservative expectation
15 years	12%	19,802	35,64,360	1,00,00,000	Popular target plan
15 years	14%	16,340	29,41,200	1,00,00,000	Needs discipline through cycles
20 years	10%	13,055	31,33,200	1,00,00,000	Low pressure, long runway
20 years	12%	10,020	24,04,800	1,00,00,000	Classic 10k/month plan
20 years	14%	7,595	18,22,800	1,00,00,000	Aggressive return assumption
25 years	10%	7,475	22,42,500	1,00,00,000	Very comfortable pace
25 years	12%	5,274	15,82,200	1,00,00,000	Small SIP, big outcome
25 years	14%	3,588	10,76,400	1,00,00,000	High-return assumption

Note: Figures are approximations for planning and are rounded.

DIY calculator

If you want to verify numbers yourself or build a calculator:

Excel/Google Sheets (beginning-of-month payments):
- Monthly SIP needed:
- =PMT(annual_return/12, years*12, 0, -10000000, 1)
- Example for 12% and 20 years:
- =PMT(12%/12, 240, 0, -10000000, 1) → ≈ ₹10,000
For an ordinary annuity (end-of-month SIP), set the last argument to 0 and expect a slightly higher monthly SIP to reach the same corpus.
To model a step-up SIP annually, use the growing annuity formula, or set up a year-wise table where each year’s monthly SIP increases by a fixed percentage and accumulates at the chosen return.
For inflation-adjusted goals, inflate the target first:

$F V_{target} = F V_{today} \times (1 + i)^{t}$

then compute the SIP for $F V_{target}$ .

Common mistakes

Using unrealistic return assumptions based on recent bull markets.
Ignoring inflation, so the corpus looks big but buys less in the future.
Keeping the same SIP for years despite rising income; not using a step-up.
Choosing too many funds with overlapping portfolios (closet indexing).
Pausing SIPs during market downturns; volatility is the point of cost averaging.
Not reviewing annually; goals, income, and markets change.
Forgetting costs and taxes; actual CAGR can be 0.5–1.5% lower than headline returns.

Practical checklist

Fix your goal in today’s rupees. Inflate it to get the future target.
Choose a conservative/moderate return (10–12%) unless you accept higher risk.
Set tenure based on the goal date and minimum 10–15 years for equity-heavy SIPs.
Pick 1–3 well-managed, low-cost funds across market caps or an index+tilt combo.
Automate a 10% annual step-up to keep pace with income and inflation.
Rebalance annually if using multiple asset classes (equity/debt/gold).
Track progress yearly; adjust SIP if you drift from the target path.

Quick examples

Goal: ₹1 crore in 20 years at 12%
- Monthly SIP ≈ ₹10,000; total invested ≈ ₹24 lakh.
Goal: ₹1 crore in 15 years at 12%
- Monthly SIP ≈ ₹19,800; total invested ≈ ₹35.6 lakh.
Goal: ₹1 crore in 10 years at 12%
- Monthly SIP ≈ ₹43,000; total invested ≈ ₹51.7 lakh.
Goal: ₹1 crore in today’s value in 20 years (6% inflation), i.e., target ≈ ₹3.2 crore
- Monthly SIP ≈ ₹32,000 at 12% with flat SIP, or start ≈ ₹18,000–₹20,000 with a 10% step-up.

FAQs

What return should I use?

Plan with 10–12% for equity-heavy portfolios over 15–25 years. If you prefer higher equity concentration and accept volatility, 12–14% is fine for estimation, but review annually.

Can I reduce risk near the goal?

Yes. Gradually de-risk 2–3 years before the goal by shifting part of the corpus from equity to short-duration debt to protect the target.

Should I pick lump sum or SIP?

SIP is behaviorally easier and smooths volatility. Lump sums suit investors with cash on hand and strong risk discipline; even then, many stagger via STP.

How many funds do I need?

Often 1–3 diversified funds are enough (e.g., one broad index, one mid-cap or flexi-cap). More funds rarely add value and complicate tracking.

How do taxes affect my goal?

Equity LTCG above the exemption is taxed at 10%. Keep a buffer (5–10%) in your corpus target to cover taxes and slippage.

Can I reach ₹1 crore faster?

Increase the monthly SIP, use a step-up, extend the tenure where possible, and keep costs low. Avoid chasing returns with frequent scheme changes.

Is 12% realistic?

Over long stretches, diversified equity has delivered around 10–14% in India, but returns are path-dependent. Use 12% as a planning midpoint, not a promise.