10X20X15 Formula: Rs 10k monthly SIP will grow to Rs 1.51 cr | Know how

Priya Vishwakarma Sep 04,2024

How does the 10X20X15 formula work?

[{"selector":"#anim-bb6ee7fa-f807-408f-8b35-42c31ea5399b [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-16.839917116886355%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] "10" represents a monthly SIP of Rs 10k. "20" signifies the number of years, i.e, you need to invest in SIP for 20 years. "15" denotes the anticipated returns i.e, 15 per cent.

Calculating average investment

[{"selector":"#anim-856708b6-2e9b-4137-8f74-07b2dc4107b1 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-36.748798043188415%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Using this formula, if you start a monthly SIP of Rs 10,000 and continue for 20 years, your total investment will amount to Rs 24,00,000.

Calculating average return

[{"selector":"#anim-d0fff5ba-3794-4c1a-b09f-ef41498a351f [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(28.90624987200394%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] With an average return rate of 15 per cent, your investment will grow, earning approximately Rs 1,27,59,550 in long-term capital gains over 20 years.

Calculation to create corpus of over Rs 1 crore

[{"selector":"#anim-020b1733-a5b2-462b-96d8-764a092e68e7 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] At the end of the 20-year period, combining your initial investment and the interest earned, you will accumulate a total of Rs 1,51,59,550.

You become crorepati in 20 years

[{"selector":"#anim-e9c7d662-2522-4ca1-a423-19dda8693bd8 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-12.409855442960735%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] By following the 10X20X15 formula, you can amass Rs 1.51 crore and become a crorepati in 20 years.

Benefits of SIP

[{"selector":"#anim-64f256ff-b074-4b7c-8f13-2528f9074e4f [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-22.68629787416798%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] SIP offers significant benefits, primarily due to the power of compounding. The longer the SIP duration, the greater the compounding benefits.