Ever wondered, how much monthly savings you need in order to create a corpus of 1 Crore at the specified rate of return. Below is the table where it shows how much money you need to contribute at specified rate of return in order to achieve the target of 1 crore.
There are few surprising fact that @ return rate of 12% for 20 years you have to shell out Rs. 10109 and for the same tenure if the return is 8% you have to contribute 16977 monthly. If you invest just Rs. 1444 monthly for 30 years which supposedly earns 15% the you will be a crorepati. And mind it, earning 15% annual return is very much possible practically for such a long duration.
Actually this is the effect of "Power of Compounding" and that 2%, 3%, 4%higher return matters a lot to our savings.
| Financial Goal | Annual Rate of Returns in % | Monthly Investment Required for 5 years | Monthly Investment Required for 10 years | Monthly Investment Required for 20 years | Monthly Investment Required for 30 years |
| 1 Crore | 15 | 112899 | 36335 | 6679 | 1444 |
| 14 | 116016 | 38600 | 7685 | 1821 | |
| 13 | 119197 | 40977 | 8824 | 2287 | |
| 12 | 122444 | 43471 | 10109 | 2861 | |
| 11 | 125758 | 46083 | 11552 | 3566 | |
| 10 | 129137 | 48817 | 13169 | 4424 | |
| 9 | 132584 | 51676 | 14973 | 5462 | |
| 8 | 136097 | 54661 | 16977 | 6710 | |
| 7 | 139679 | 57775 | 19197 | 8197 | |
| 6 | 143328 | 61021 | 21643 | 9955 | |
| 5 | 147046 | 64399 | 24329 | 12015 | |
| 4 | 150832 | 67912 | 27265 | 14408 |
