SIP Returns for 5, 10, 20 Years: ₹5,000 a Month
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A SIP of ₹5,000 a month, assuming a 12% yearly return, could grow to about ₹4.12 lakh in 5 years, ₹11.62 lakh in 10 years and ₹49.96 lakh in 20 years. You would invest ₹3 lakh, ₹6 lakh and ₹12 lakh of your own money in those periods. Time matters most: the first 10 years add about ₹5.6 lakh of gains, while years 11 to 20 add more than ₹32 lakh on top.
These figures use an assumed constant return, and real mutual fund returns go up and down. Below you'll find the formula, a table at three different rates, and how a yearly step-up changes the result. Try your own numbers in our SIP Calculator.
SIP return formula
A SIP (systematic investment plan) puts a fixed amount into a mutual fund every month. Each instalment grows for the months it stays invested. The future value of all instalments together is:
FV = P × [((1 + i)n − 1) ÷ i] × (1 + i)
- P = monthly investment (₹5,000)
- i = monthly rate = yearly return ÷ 12 ÷ 100 (12% a year → 0.01)
- n = number of monthly instalments (10 years → 120)
The final "× (1 + i)" assumes each instalment goes in at the start of the month, which is what most SIP calculators, including ours, assume.
Worked example: ₹5,000 SIP for 10 years at 12%
- i = 12 ÷ 12 ÷ 100 = 0.01 and n = 120.
- (1.01)120 ≈ 3.3004, so ((1.01)120 − 1) ÷ 0.01 ≈ 230.04.
- FV = 5,000 × 230.04 × 1.01 ≈ ₹11,61,695.
- Amount invested = ₹5,000 × 120 = ₹6,00,000.
- Estimated gain ≈ ₹5,61,695.
Your money almost doubles in 10 years at this assumed rate. Not every instalment grows for the full 10 years, though: the last one is invested for just one month.
SIP calculator for 5, 10, 15, 20 and 25 years
Here is the estimated value of a ₹5,000 monthly SIP at three assumed yearly returns. Equity funds are usually planned at 10–12% over long periods, and debt or hybrid funds at lower rates. None of these returns is guaranteed.
| Years | You invest | At 8% | At 10% | At 12% |
|---|---|---|---|---|
| 5 | ₹3,00,000 | ₹3,69,834 | ₹3,90,412 | ₹4,12,432 |
| 10 | ₹6,00,000 | ₹9,20,828 | ₹10,32,760 | ₹11,61,695 |
| 15 | ₹9,00,000 | ₹17,41,726 | ₹20,89,621 | ₹25,22,880 |
| 20 | ₹12,00,000 | ₹29,64,736 | ₹38,28,485 | ₹49,95,740 |
| 25 | ₹15,00,000 | ₹47,86,833 | ₹66,89,452 | ₹94,88,175 |
Two patterns stand out. First, the gap between 8% and 12% looks small over 5 years (about ₹42,600) but grows to over ₹20 lakh by year 20. Second, the value roughly doubles every five years after year 10 at 12%, because gains keep earning their own gains.
SIP for 5 years: what to expect
People often search for the "best SIP plan for 5 years". Five years is short for equity. Markets can fall 20–30% in a bad year, and a 5-year SIP may not have time to recover. In the table, the assumed 12% adds only about ₹1.12 lakh over 5 years. If you need the money on a fixed date within about 5 years, many investors keep a large part of it in safer options such as debt funds, an RD or an FD, and use equity SIPs for goals 7–10 or more years away.
SIP with yearly step-up: a big difference
Most salaries rise every year, so you can raise your SIP too. If you start at ₹5,000 a month and increase it by 10% every year for 20 years (assuming 12% returns):
- Total invested ≈ ₹34,36,500
- Estimated value ≈ ₹99,44,358
That's nearly double the ₹49.96 lakh from a flat ₹5,000 SIP. Our SIP calculator has a step-up box, so you can test 5%, 10% or 15% increases.
The cost of starting late
At 12% a year, a ₹5,000 SIP for 30 years grows to about ₹1.76 crore, while 20 years gives about ₹50 lakh. Ten extra years of ₹5,000 a month (₹6 lakh more invested) adds over ₹1.26 crore. Starting early with a small amount usually beats starting late with a big one.
SIP or lumpsum?
If you already have money in hand, a lumpsum has more time in the market: ₹6,00,000 invested at once at 12% for 10 years becomes about ₹18,63,509, compared with ₹11.62 lakh from spreading the same ₹6 lakh over a 10-year SIP. Most salaried people don't have a large sum at the start, though, and a SIP also spreads your buying across market highs and lows. Compare both with the Lumpsum Calculator.
Frequently asked questions
How much will ₹5,000 per month SIP be in 20 years?
About ₹49.96 lakh if returns average 12% a year, or about ₹38.28 lakh at 10%. You invest ₹12 lakh. Actual returns depend on the market and the fund.
Is SIP return guaranteed?
No. Mutual fund SIPs are market-linked, so the value can fall as well as rise. The rates in this article are assumptions for planning, not promises.
How are SIP returns taxed?
Each SIP instalment is treated as a separate purchase. Equity fund gains are long-term after 12 months, and gains above ₹1.25 lakh in a year are taxed at 12.5%. Short-term gains are taxed at 20%. Debt fund rules are different, so check the current rules before you redeem.
What return should I assume for a SIP?
Many planners use 10–12% for long-term equity and 6–8% for debt. Using a lower rate gives a safer plan.
For information only, not investment advice. Returns shown are assumptions; we do not recommend any fund or promise any return.