How compound interest works and why starting 5 years earlier can double your wealth.
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Earning returns on your returns — the snowball effect of investing.
Start at 25: ₹5,000/month for 10 years, then stop. By 60: ~₹2.8 crore (at 12%).
Start at 35: ₹5,000/month for 25 years. By 60: ~₹94 lakh (at 12%).
Person A invested ₹6L total, Person B invested ₹15L. Yet A has 3x more. That is compounding.
Try our SIP Calculator with your numbers.
Hypothetical returns for illustration. Not guaranteed.
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All calculations use standard financial formulas. SIP returns use compound interest formula: FV = PMT × [((1+r)^n - 1) / r]. EMI uses: EMI = P × r × (1+r)^n / [(1+r)^n - 1]. Tax calculations follow Income Tax Act provisions for the current assessment year. Insurance premiums are indicative market averages.
Sources: RBI, SEBI, Income Tax Department of India, CIBIL, IRDA, LIC of India. Data verified as of Aug 2026.
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Disclaimer: This website provides general educational information only and does not provide personalized investment advice or recommendations. Financial decisions should be made after considering individual circumstances and consulting a qualified professional where appropriate. Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing. Past performance does not guarantee future results.