SIP calculator: How much should you invest at 30, 35 or 40 to build ₹1 crore by 50?

Building a Rs 1-crore corpus by the age of 50 requires different monthly investments depending on when you start. Starting at 30, 35 or 40 gives you 20, 15 or 10 years respectively to reach the same target. For the calculations, an assumed 12% annualised return on equity mutual fund investments is used.

For the long term, many investors use equity mutual funds through SIPs to build wealth. The amount required depends largely on the investment period and assumed return.

Historical 10-year returns cited from Value Research were 11.76% for large-cap, 15.50% for mid-cap and 16.76% for small-cap funds. However, past performance does not guarantee future returns. For this calculation, a 12% annualised return is assumed.

If you start investing at 30, you have 20 years to reach the Rs 1-crore target. At an assumed 12% annualised return, a monthly SIP of approximately Rs 10,875 could help you build a corpus of Rs 1 crore by age 50.

If you start at 35, you have only 15 years and would need to invest an estimated Rs 21,020 per month. Starting at 40 leaves just 10 years, increasing the estimated monthly SIP to Rs 46,640.

The Rs 46,640 SIP is around 4.28 times the Rs 10,875 monthly investment required when starting at 30.

The table compares the estimated monthly SIP required for a Rs 1-crore corpus by age 50 when starting at 30, 35, and 40, assuming a 12% annualised return.

A step-up SIP allows you to start with a smaller monthly investment and increase it every year as your income rises. For these calculations, a 5% annual step-up and 12% annualised return are assumed.
● Start at 30: Rs 7,850 monthly initially
● Start at 35: Rs 16,160 monthly initially
● Start at 40: Rs 37,130 monthly initially

At age 30, a Rs 7,850 monthly SIP, increased by 5% every year, could help reach Rs 1 crore in 20 years. At 35, the initial SIP rises to around Rs 16,160, while at 40, it rises to approximately Rs 37,130 for the respective 15-year and 10-year periods.

The comparison shows that a 5% annual step-up can reduce the initial monthly SIP required to target Rs 1 crore, compared with a fixed SIP. All calculations use the assumptions stated above. Calculators used: Groww and Percentage Calculator.