The numbers (12% expected return)
Flat = ₹10,000/month for the full duration. Step-up = ₹10,000 in year 1, raised 10% every year. Returns compounded monthly at 12% p.a.
| Years | Flat ₹10k | 10% step-up | Total invested (flat / step-up) |
|---|---|---|---|
| 5 | ₹8.25 L | ₹9.85 L | ₹6 L / ₹7.33 L |
| 10 | ₹23.23 L | ₹33.74 L | ₹12 L / ₹19.12 L |
| 15 | ₹50.46 L | ₹86.84 L | ₹18 L / ₹38.13 L |
| 20 | ₹99.91 L | ₹1.99 Cr | ₹24 L / ₹68.73 L |
| 25 | ₹1.90 Cr | ₹4.28 Cr | ₹30 L / ₹1.18 Cr |
| 30 | ₹3.53 Cr | ₹8.83 Cr | ₹36 L / ₹1.97 Cr |
The 20-year mark is where ₹10k crosses ₹1 crore flat — and ₹2 crore with step-up. Stretch to 30 years and add step-up, you're between ₹3.5 Cr and ₹8.8 Cr from the same starting SIP. Time + step-up is the difference between ₹1 Cr and ₹3 Cr.
Why the gap is so big
Compounding rewards the last few years more than the first. Years 25–30 add ₹1.6 Cr to a flat SIP — more than years 1–20 combined. Step-up stacks on top: each annual hike rides the full remaining runway. A ₹50,000/month SIP starting in year 25 still grows for 5 years at 12%.
Common mistakes
- Starting late, then over-saving to catch up. ₹30k SIP for 15 years still loses to ₹10k SIP for 30 years.
- Assuming 18–20% returns. 12% is already a long-run equity assumption. Plan on 12%, celebrate if more.
- Stopping SIPs in a market dip. The cheap NAVs in year 8 are what fund your year 25 corpus.
- Not stepping up with salary. A 10% step-up on a 10% raise costs nothing in real terms and roughly doubles the 20-year corpus.
12% is a long-run equity assumption, not a guarantee. Real returns vary year to year. A ten-year run can deliver 8% or 15%. Treat the table as a planning baseline, not a promise.
Updated May 26, 2026. Figures computed at 12% p.a. compounded monthly. Step-up applied annually at 10%. Pre-tax, pre-expense-ratio.