This Is How Much You Need to Invest Per Month to Save Rs. 1 Crore

For most people who are on a journey to financial independence, saving the first one crore is the first and toughest goal. While there are numerous financial plans selling the promise of getting 1 crore, all you need to start this journey is deciding on 3 basic variables:

  1. How much time do you want to achieve this goal in?
  2. What amount will you save every month?
  3. Where will you invest your savings?

Time-The Inflation Factor

The most important thing to understand while aiming for an absolute number like 1 crore is that 1 crore after 5, 7 or 10 years will not have the same value as it does today. Due to inflation, the cost of goods and services rises each year. The current rate of inflation is about 4%. 1 crore in the future will not be worth as much as it is today.

Amount Invested

Breaking down the amount to be invested into monthly or even weekly numbers can be psychologically helpful. The key to achieving the goal is to stay consistent. While bank interest rates or mutual fund returns will vary over time, staying invested over the long term will provide a stable return.

Investment options

We take a look at two basic options for investment: Bank FDs and Equity Mutual Funds. At current rates Bank FDs provide an annual return of 7%. For equity mutual funds, we assume a conservative rate of 12%. Most multi-cap funds have provided in excess of 12% over a 5 to 10 year period. However, it is important to remember that short term (5 years or less) returns from mutual funds can be volatile. If you are saving for a short term goal, a bank FD is probably a better option.


The figures shown below are all pre-tax. Tax rates for Bank FDs differ from mutual funds and can change going forward. For mutual funds, the amount is taxed only when the funds are redeemed. Interest income from FDs is taxed based on what income tax slab you fall in, while equity mutual funds currently have a long term capital gains tax of 10%.

Scenario 1: 5 years

Amount invested/monthYearsInterest RateAmount Saved

Scenario 2: 7 years

Amount invested/monthYearsInterest RateAmount Saved

Scenario 3: 10 years

Amount invested/monthYearsInterest RateAmount Saved

Scenario 4: 15 years

Amount invested/monthYearsInterest RateAmount Saved

(Above amounts are compounded on an annual basis).


Whether your savings goal is 1 crore or a completely different amount, it can be achieved by setting up a simple investment plan and sticking to it.

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