From 10,000 monthly SIP to Rs 5 crore retirement corpus: How much time it may take to achieve that milestone; get calculations

From 10,000 monthly SIP to Rs 5 crore retirement corpus: How do you cover large distances when you need to meet an appointment deadline? You start your journey early. You know that the event can't be postponed, and if you start late, you will miss it for sure. Or, if you start too late and make extra effort to reach the destination in time, there is still a possibility to miss the appointment.

Retirement planning is no different. It doesn't require a fast and strenuous journey.

If you have a large corpus goal to achieve and you start early and make steady and regular investments, there are high chances that you will achieve the goal; however, uphill it may be.

So, when we say that Rs 10,000 monthly investment can lead to Rs 5 crore retirement corpus, it is not impossible.

It needs a long time and constant investment.

With that, even if your contribution is Rs 10,000 a month, the journey to a Rs 5 crore retirement corpus is not impossible. 

Journey from Rs 10,000 monthly investment to Rs 5 crore corpus 

We know our monthly contribution and the retirement corpus here, but let's put some more conditions here.

We need to select an investment scheme, so let's select SIP investment in an equity mutual fund(s).

We are expecting 12 per cent annualised SIP returns. But we will also show that what will happen if you get 13 per cent, 14 per cent, and 15 per cent annualised SIP returns, respectively.

From Rs 10,000 monthly SIP to Rs 5 crore corpus at 12% growth

If you get 12 per cent annualised return on Rs 10,000 monthly SIP.

It will take a little over 34 years to achieve the Rs 5 crore target.

In that condition, your investment in that period will be Rs 40,80,000, the estimated long-term capital gains will be Rs 4,50,09,863, and the expected amount will be Rs 4,90,89,863.

However, if you stay in investment for 1 more year, your expected amount will grow to Rs 5,51,08,311.

From Rs 10,000 monthly SIP to Rs 5 crore corpus at 13% growth

If you achieve 14 per cent annualised growth on your SIP investment, you can achieve the Rs 5 crore retirement corpus target in a little over 32 years.

In 33 years, your investment will be Rs 39,60,000, estimated long-term capital gains will be Rs 5,07,51,924, and the expected amount will be Rs 5,47,11,924. 

From Rs 10,000 monthly SIP to Rs 5 crore corpus at 14% growth

If your annualised SIP return is 14 per cent, it will take 31 years to achieve the Rs 5 crore retirement corpus target.

In 31 years, your investment will be Rs 37,20,000, estimated long-term capital gains will be Rs 4,88,44,593, and the expected amount will be Rs 5,25,64,593. 

From Rs 10,000 monthly SIP to Rs 5 crore corpus at 15% growth

If you get 15 annualised SIP returns on your Rs 10,000 monthly income, it will take a little over 29 years to achieve the Rs 5 crore retirement corpus target.

In 30 years, your investment will be Rs 36,00,000, estimated long-term capital gains will be Rs 5,27,17,704, and the expected amount will be Rs 5,63,17,704.