# SIP calculator: how much you need to invest each month to accumulate Rs 5 crore in 15 years

SIP calculator: how much you need to invest each month to accumulate Rs 5 crore in 15 years

New Delhi: The secret to building up a big body is not just to make more money but to save consistently, investments over a long period of time. Accumulating Rs 5 crore seems like an impossible task for many winning people. However, it is possible if you start investing early and stay consistent. In fact, you can accumulate Rs 5 crore in 15 years if you periodically set aside some of your income.

Systematic investment plans (SIPs) of mutual funds offer a great alternative for those, especially the salaried category, who do not have the option of investing a lump sum. Long-term investors can expect a 12% return per year on their mutual fund SIPs, experts say.

Accumulating a corpus of Rs 5 crore in 15 years is an ambitious goal that requires investors to increase their SIPs each year along with the increase in their annual income. It is possible to reach the target of Rs 5 crore in 15 years using the increase method while allocating SIP. A 15% annual increase in equity mutual funds is needed to reach the target of Rs 5 crore in 15 years.

According to the progressive SIP calculator, a SIP of Rs 41,500 is required per month for a period of 15 years with an annual increase of 15% and assuming a return of 12% to generate Rs 5.01 crore. This means that you top up your SIP by 15% every year, for example, Rs 41,500 per month in 2022, Rs 47,725 in 2023, Rs 54,883 and so on.

SIP calculator:

Note that in general, an annual increase advised to an investor is 10 percent. However, for a huge amount like Rs 5 crore, the investor is advised to go for an annual increase of 15% if he is free from all family responsibilities and is able to earn at 6 figures.

Assuming a 12% return on their monthly SIP for 15 years maintaining an annual increase of 15%, the SIP Return Calculator suggests that a person will need Rs 41,500 to start investing. After 15 years, they can get 5.01.20.926.99 or around Rs 5 crore as the due amount.