Sip Calculator
Personal finance does not need to be complicated. Instead of building massive spreadsheets, you can use structured **Rules of Thumb** to direct your budgeting, target-setting, and wealth compounding. Let's look at two of the most popular formulas: the **15-15-15 Compounding Rule** and the **10-20-30-40 Budget Allocation Rule**.
Understanding the Rules
- The 15-15-15 Rule: A wealth-builder rule showing that investing **₹15,000 per month** for **15 years** at a **15% return** CAGR yields a final corpus of exactly **₹1 Crore**.
- The 10-20-30-40 Budget Rule: A money management blueprint where you split your monthly income: **10%** for safety (insurance/emergency), **20%** for long-term investments (SIPs), **30%** for financial goals, and **40%** for living expenses.
Rule Compounding Calculator ↓
🧮 Interactive Rule Simulator
Estimated Corpus (15% return)
-
Details
Invested Capital: -
Compounding Gains: -
How to Put the Rules to Work
- Set your minimum target: Start with the 20% SIP allocation rule immediately. If you earn ₹50,000, automate a ₹10,000 monthly SIP on pay day.
- Accelerate with salary step-ups: If you cannot hit a ₹15,000 monthly SIP right now, start with ₹5,000 and increase it by 15% every year to beat the 15-15-15 milestone!
Model Your Future Nest Egg
Compounding grows exponentially in the final years. Try out different interest rates and schedules to map your financial freedom.
Start SIP Calculator →Frequently Asked Questions
What is the 15-15-15 rule in mutual funds?
The 15-15-15 rule states that a monthly SIP of ₹15,000 invested for 15 years at an expected return of 15% CAGR will grow into a massive corpus of ₹1 Crore. Out of this, you invest only ₹27 Lakhs, and the remaining ₹73 Lakhs is pure compounding growth.
What is the 10-20-30 allocation rule?
The 10-20-30 rule is a budgeting guidelines: save 10% of your income for emergency funds or insurance, allocate 20% towards long-term savings like equity SIPs, and direct 30% towards short-to-medium-term goals, leaving 40% for active living expenses.
Can I really expect a 15% CAGR return over 15 years?
While a 15% CAGR is on the higher side, many diversified mid-cap, small-cap, and active flexi-cap mutual funds in India have historically delivered 15%+ returns over a rolling 15-year period. However, a conservative baseline of 12% is recommended for safety.
