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.
How to Use This Calculator
Adjust the inputs
Use the sliders or text boxes to enter your specific financial numbers.
Review the charts
The interactive charts will update immediately, showing a visual breakdown of your investments and returns.
Analyze the results
Look at the summary cards and tables to understand your total invested amount, estimated returns, and final corpus.
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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