Monthly SIP returns
₹500 SIP for 5 Years — Maturity Value and Returns
₹500 a month for 5 years ends up at approximately ₹41,243 assuming 12% annualised returns. You will have paid in ₹30,000 of your own money, so about ₹11,243 of the final corpus is pure return.
Maturity value at 12%
₹41,243
₹30,000 invested + ₹11,243 growth over 5 years
Total invested
₹30,000
Wealth gained
₹11,243
At 10% return
₹39,041
At 15% return
₹44,841
Worth in today money
₹30,819
With 10% yearly step-up
₹49,229
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Open the full SIP calculator and run your own amount, rate and tenure.
Year-by-year growth of a ₹500 monthly SIP at 12%
| Year | Invested | Value | Gain | Gain % |
|---|---|---|---|---|
| 1 | ₹6,000 | ₹6,405 | ₹405 | 6.7% |
| 2 | ₹12,000 | ₹13,622 | ₹1,622 | 13.5% |
| 3 | ₹18,000 | ₹21,754 | ₹3,754 | 20.9% |
| 4 | ₹24,000 | ₹30,917 | ₹6,917 | 28.8% |
| 5 | ₹30,000 | ₹41,243 | ₹11,243 | 37.5% |
Same SIP at different return rates
| Annual return | Corpus after 5 years | Gain over invested |
|---|---|---|
| 8% | ₹36,983 | ₹6,983 |
| 10% | ₹39,041 | ₹9,041 |
| 12% | ₹41,243 | ₹11,243 |
| 14% | ₹43,600 | ₹13,600 |
| 15% | ₹44,841 | ₹14,841 |
What ₹41,243 is actually worth in 2031
Nominal numbers flatter long horizons. At 6% average inflation, the ₹41,243 you receive after 5 years has the purchasing power of about ₹30,819 in today's money. That is still comfortably ahead of the ₹30,000 you put in, but it is the figure you should plan a real-world goal around.
This is the single biggest reason a ₹500 SIP that looks adequate on paper can fall short of an actual goal 5 years out. Always check the inflation-adjusted column before deciding the amount is enough.
Why a step-up beats a flat ₹500
Keeping the SIP frozen at ₹500 for 5 years assumes your income never rises. Increasing it by just 10% a year — roughly a normal appraisal — takes the same plan to about ₹49,229, which is 19.4% more without ever feeling like a bigger sacrifice.
Most fund houses let you set this up once as a "step-up SIP" or "top-up SIP" mandate so it happens automatically every April.
Equity SIP versus the same money in a deposit
Putting ₹500 a month into a 7% recurring deposit for the same 5 years would end at roughly ₹36,005 — before tax. Deposit interest is taxed at your slab rate, so a 30%-bracket saver keeps closer to ₹34,055.
Equity returns are not guaranteed and a 5-year window can contain long flat stretches. The trade-off is the point: you accept volatility in exchange for an expected ₹5,238 of extra corpus.
Frequently asked questions
Short, specific answers — no sign-up, no sales pitch.
How much will I get if I invest ₹500 per month for 5 years?
At a 12% annual return you would accumulate about ₹41,243 — ₹30,000 of contributions plus ₹11,243 of growth. At a more conservative 10% it is ₹39,041, and at 15% it is ₹44,841.
Is ₹500 a month enough for 5 years?
It depends on the goal, not the amount. ₹41,243 nominal is roughly ₹30,819 in today's purchasing power after 5 years of 6% inflation. Compare that against what your goal actually costs today and increase the SIP if there is a gap.
What return rate should I assume for a 5-year SIP?
For diversified equity funds, 12% is the conventional planning assumption and 10% is the conservative one. Indian equity indices have delivered roughly 11-13% over long rolling periods, but no rate is guaranteed. Plan with 10-12% and treat anything above as a bonus.
Will I pay tax on this ₹500 SIP?
Equity mutual fund gains held over a year are long-term capital gains, taxed at 12.5% above the ₹1.25 lakh annual exemption. Because SIP units are bought monthly, each instalment has its own holding period, so redeem oldest-first to stay long-term.
Can I stop or pause a SIP midway?
Yes. SIPs have no lock-in except in ELSS funds, which lock each instalment for three years. You can pause, reduce or stop at any time without penalty, and existing units keep compounding.
Related calculations
₹3,000 SIP for 15 years
Maturity value at 12%: ₹15.14 lakh
₹3,000 SIP for 20 years
Maturity value at 12%: ₹29.97 lakh
₹3,000 SIP for 25 years
Maturity value at 12%: ₹56.93 lakh
₹5,000 SIP for 5 years
Maturity value at 12%: ₹4.12 lakh
₹5,000 SIP for 10 years
Maturity value at 12%: ₹11.62 lakh
₹5,000 SIP for 15 years
Maturity value at 12%: ₹25.23 lakh
Full interactive calculators
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Figures are mathematical projections based on the stated assumptions. Market-linked returns are not guaranteed. This is educational information, not investment advice.