Why the last five years of a SIP matter most

Picture a ₹10,000 monthly SIP earning a steady 12% a year. After 15 years you have ₹50.46 L. Keep going for five more years and it becomes ₹99.91 L. The last five years add about as much as the first fifteen put together.

This isn't a trick of the numbers you picked. It's how compounding works, and it changes how you should think about stopping, pausing or starting late.

Why growth piles up at the end

Every year your fund grows by a percentage of what's already there. Early on, most of the pot is money you paid in, so 12% of it is small. Later, the pot is mostly past growth, and 12% of a big number is a big number.

Over 20 years you pay in ₹24 L. The rest, ₹75.91 L, is growth you never had to earn yourself. Most of it arrives near the end.

What stopping five years early costs

If you stop at year 15, you don't just lose five years of instalments. You lose the stretch where the pot is largest and growing fastest.

• Stop at 15 years: ₹50.46 L
• Carry on to 20 years: ₹99.91 L
• Carry on to 25 years: ₹1.9 Cr

The extra five instalment-years between 15 and 20 cost you ₹6 lakh. Staying invested through them adds far more than that.

Try it with your numbersSIP CalculatorDrag the years slider and watch where the curve bends.

Starting late works the same way, in reverse

A five-year delay in starting removes years from the end of your plan, not the beginning. Those are the most valuable years, which is why starting small and early usually beats starting big and late.

What this doesn't mean

• Returns aren't steady. Real markets swing, and a bad run near the end hurts more because the pot is bigger. That's why people often move money to safer options as they near a goal.
• 12% isn't a promise. It's a round number to show the shape. Try 8–10% in the calculator for a cautious plan.
• Inflation still bites. A crore in 20 years buys much less than a crore today. Switch on the today's-money view to see it.

When you reach the goal and start withdrawing, the same maths decides how long the money lasts.

Try it with your numbersSWP CalculatorSee how long your corpus pays you a monthly income.

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Figures assume a fixed 12% yearly return, compounded monthly, with each instalment paid at the start of the month. For illustration only, not investment advice. Returns are not guaranteed.