How Much SIP Should You Do Based on Your Salary?
Discover the ideal SIP amount for your income level using the famous 50-30-20 rule. Use our interactive calculator to see how much wealth you can build over 20 years.
Salary to SIP Calculator
Personalised Recommendation (50-30-20 Rule)
Based on allocating 20% of your income to savings and investments.
Investment Strategies & 20-Year Projections
The 50-30-20 Rule Explained for SIP
Popularized by Senator Elizabeth Warren, the 50-30-20 rule is a simple and effective budgeting method to manage your finances:
- 50% Needs: Essential living expenses (rent, groceries, utilities, EMIs).
- 30% Wants: Discretionary spending (dining out, entertainment, shopping).
- 20% Savings & Investments: Your SIPs, emergency fund, and debt repayment.
Dedicating 20% of your salary specifically to investments like equity mutual funds through SIP ensures you are consistently building wealth without compromising your current lifestyle.
How Much SIP by Salary Bracket
| Monthly Salary | Conservative (10%) | Recommended (20%) | Aggressive (30%) |
|---|---|---|---|
| ₹30,000 | ₹3,000 | ₹6,000 | ₹9,000 |
| ₹50,000 | ₹5,000 | ₹10,000 | ₹15,000 |
| ₹75,000 | ₹7,500 | ₹15,000 | ₹22,500 |
| ₹1,00,000 | ₹10,000 | ₹20,000 | ₹30,000 |
| ₹2,00,000 | ₹20,000 | ₹40,000 | ₹60,000 |
Why You Should Increase SIP Every Year
As your salary grows, your investments should grow too. A Step-up SIP involves increasing your investment amount annually by a fixed percentage (e.g., 5% or 10%).
By aligning your SIP increments with your annual salary appraisals, you can reach your financial goals significantly faster and build a much larger corpus to combat inflation, all without feeling a pinch in your monthly budget.
Frequently Asked Questions
Plan Your Investments
Use our advanced calculators to project your wealth with step-up options.
For educational purposes only. Consult a financial advisor before investing.
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