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SIP calculator: How many years does it take for returns to beat savings in a ₹15,000 SIP?
4 min read | Updated on May 26, 2026, 16:01 IST
SUMMARY
For investors interested in accumulating significant wealth from mutual funds through SIP, staying invested could be critical, as exiting before the 10-12 year mark means you leave before the most powerful phase of compounding.
It can take a longer time for returns to meaningfully contribute to your total corpus. | Image: Shutterstock
Many mutual fund investors chase past returns to reach their financial goals faster. But in the early years of investing, it is not returns that drive outcomes. Rather, it’s discipline.
But first, some assumptions:
-
Monthly SIP amount: ₹15,000
-
Annualised returns: 12%
| Duration | Invested amount (₹) | Returns @12% (₹) |
|---|---|---|
| 1 year | 1,80,000 | 12,139 |
| 2 years | 3,60,000 | 48,647 |
| 3 years | 5,40,000 | 1,12,614 |
| 4 years | 7,20,000 | 2,07,522 |
| 5 years | 9,00,000 | 3,37,295 |
| 6 years | 10,80,000 | 5,06,355 |
| 7 years | 12,60,000 | 7,19,684 |
| 8 years | 14,40,000 | 9,82,898 |
| 9 years | 16,20,000 | 13,02,322 |
| 10 years | 18,00,000 | 16,85,086 |
| 11 years | 19,80,000 | 21,39,222 |
| 12 years | 21,60,000 | 26,73,782 |
In terms of percentage, the share of returns and savings in each year will be as follows:
| Duration | Invested % | Returns % |
|---|---|---|
| 1 year | 93.7% | 6.3% |
| 2 years | 88.1% | 11.9% |
| 3 years | 82.8% | 17.2% |
| 4 years | 77.6% | 22.4% |
| 5 years | 72.7% | 27.3% |
| 6 years | 68.1% | 31.9% |
| 7 years | 63.7% | 36.3% |
| 8 years | 59.4% | 40.6% |
| 9 years | 55.4% | 44.6% |
| 10 years | 51.6% | 48.4% |
| 11 years | 48.1% | 51.9% |
| 12 years | 44.7% | 55.3% |
In this example, the calculator shows that returns will exceed the invested amount in the 11th year.
In a real-life situation, however, the number of years required for returns to surpass the invested amount can vary based on factors such as actual returns and the total amount invested.
For instance, it may take longer for returns to exceed the investment if the rate of return is lower. Conversely, it will take fewer years for the returns to overtake savings if the rate of return increases. Any increase in the total amount invested may also affect the outcome.
Some more insights
In the first 5-7 years, your savings drive early wealth creation as most of the corpus comes from what you invest, not returns. Therefore, in the initial years, discipline matters more than market performance for an investor.
It can take a longer time for returns to meaningfully contribute to your total corpus. In the above example, even after 10 years, returns are still under 50%. This also shows that compounding needs time to visibly kick in.
The tipping point, or the time when annual returns become bigger than savings, comes late. In the above example, returns overtake contributions only around the 11th-12th year.
For investors interested in accumulating significant wealth through SIP, staying invested could be critical, as exiting before the 10-12 year mark means you leave before the most powerful phase of compounding.
As contributions dominate for a long time, regular investing matters far more than trying to time the market. In the long run, accelerated growth in the corpus can be expected after the returns cross the 50% mark.
While the early years of investing may seem slow, they are the foundational years, building the base required for later exponential growth.
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