How much monthly SIP you need to create Rs 10 crore by age 60?

Building a retirement corpus of Rs 10 crore may seem like a distant dream to many, but with the power of compounding and disciplined SIP investing, you can achieve it. In the whole process, what matters most is not how much you earn but when you start.

FundsIndia Wealth Conversations – June 2025, a report that gives interesting long-term investment insights on various asset classes, explains how much monthly SIP amount is required to make a corpus of Rs 10 crore on retirement, assuming a 12% annual return, and at 60 years. Below is a table that shows how one can exploit the benefit of compounding in wealth building by starting early in their life.

Monthly SIP amount required to reach Rs 10 crore at 60 years

(Source: FundsIndia Research)

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Monthly SIP amount required to reach Rs 10 crore at 60 years (assume 12% returns per annum)

If you start investing via SIP at the age of 25, the monthly SIP required is only Rs 15,000

But if you delay and start at the age of 30 the monthly SIP required is 2 times more at Rs 28,000

If you delay and start at the age of 40 the monthly SIP required is 6 times more at Rs 1,00,000

The magic of compounding: Rs 1 lakh lump sum can become Rs 93 lakh

Imagine if you invested Rs 1 lakh at the age of 20 and let it grow at the rate of 12% every year — then by the age of 60, that amount can grow to around Rs 93 lakh.

Yes, just Rs 1 lakh, and you can get 93 times the return!

But what if you had invested this at the age of 25? Then the same Rs 1 lakh would have become Rs 52 lakh.

What if you had started at 30? Rs 29 lakh.

And what if you started at the age of 40? Then just Rs 9 lakh.

That is, the later you start, the lesser the benefit — even if you increase the investment amount. So time is the biggest factor.

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What is compounding, and why is it so important?

Compounding means interest on interest. You not only get returns on the investment you made, but you will also get interest on those returns the next year. And this cycle continues every year.

Think of it like a snowball rolling down a slope – as it moves forward, more snow sticks to it, and the ball gets bigger and heavier.

Albert Einstein once said: “Compound interest is the eighth wonder of the world. He who understands it, earns it… he who doesn’t, pays it.”

Early start = More freedom, less burden

The biggest advantage of investing early is that you have to invest less money every month. And you have the freedom to stop the SIP if needed, the flexibility to increase investments with increasing income and sometimes you can achieve your goal even before 60.

Example: If someone starts an SIP of Rs 5,000 at the age of 25 and increases it by 10% every year, he can build a corpus of over Rs 10 crore before retirement.

Started late? Never mind

If you are in your 40s or 50s, all is not lost. Yes, you will have to invest a little more every month, but you can still reach your goal. You just need to be consistent with your SIPs, use bonuses or annual incremental income and add tax saving funds like ELSS correctly.

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Simple message: Start now

Whether you are 20 or 40 — the best time to start investing was ‘yesterday’. The next best time is ‘today’.

If you dream of building a corpus of Rs 10 crore by retirement – a SIP of Rs 8,400 (at age 20) to Rs 1 lakh per month (at age 40) is the way to go. Compounding will do the rest – all you need to do is take the first step.

Disclaimer: The above content is for informational purposes only. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.