The table
| Start age | You invest in total | Value at 60 (12% a year) | Value at 60 (10% a year) | Monthly SIP needed to match a 25-year-old (12%) |
|---|---|---|---|---|
| 25 | ₹42 lakh | ₹6.50 crore | ₹3.83 crore | ₹10,000 |
| 30 | ₹36 lakh | ₹3.53 crore | ₹2.28 crore | ₹18,401 |
| 35 | ₹30 lakh | ₹1.90 crore | ₹1.34 crore | ₹34,228 |
| 40 | ₹24 lakh | ₹99.9 lakh | ₹76.6 lakh | ₹65,008 |
| 45 | ₹18 lakh | ₹50.5 lakh | ₹41.8 lakh | ₹1,28,727 |
SIP invested at the start of each month, compounded monthly, as on our SIP calculator. Returns are illustrative, not guaranteed, and before tax.
What stands out
- Five years of delay costs almost half the final amount. Starting at 25 instead of 30 means only ₹6 lakh more invested, but about ₹2.97 crore more at 60 at a 12% return.
- Catching up gets expensive fast. To end with the same amount as a 25-year-old investing ₹10,000 a month, a 35-year-old needs about ₹34,228 a month, and a 45-year-old about ₹1,28,727.
- The return assumption matters less than the start date. Starting at 25 at 10% beats starting at 35 at 12% by a wide margin in this table.
Why this happens
Compounding is back-loaded. In a long SIP, most of the final value comes from growth in the last ten years, on money invested in the first ten. Every year you delay removes one of those high-growth final years from the end of your timeline, not the beginning. That's why the gap between each row gets bigger, not smaller, as the start age rises.
If you're starting late
Don't be discouraged by the bottom rows. Three things help more than chasing a higher-return fund: a step-up SIP that rises 10% every year with your salary, investing part of every raise and bonus, and working or staying invested a few years longer. A 40-year-old with a 10% annual step-up can close much of the gap. Use the savings goal calculator to find the SIP for your own target.