Best SIP Amount Based on Your Salary
Learn how much to invest in SIP based on your monthly salary using practical frameworks like the 50-30-20 rule. Includes salary-wise SIP recommendations and goal-based calculations.
"How much should I invest in SIP?" is the most common question new investors ask. The answer depends on your salary, expenses, and goals—but there are practical frameworks to help you decide.
The Golden Rules
Rule 1: Invest at Least 20% of Take-Home Salary
The 50-30-20 rule is a good starting point:
- 50% for needs (rent, food, utilities)
- 30% for wants (entertainment, dining out)
- 20% for savings/investments
| Monthly Salary | 20% SIP Amount |
|---|---|
| ₹30,000 | ₹6,000 |
| ₹50,000 | ₹10,000 |
| ₹75,000 | ₹15,000 |
| ₹1,00,000 | ₹20,000 |
| ₹1,50,000 | ₹30,000 |
Rule 2: Start with What's Comfortable, Then Increase
If 20% feels too much right now, start lower:
- Minimum: 10% of salary
- Ideal: 20% of salary
- Aggressive: 30%+ of salary
The key is to start and increase with salary hikes.
Calculate your growth: Use our SIP Calculator to see how different amounts compound.
Salary-Wise SIP Recommendations
₹25,000-40,000/Month (Early Career)
| Expense | Amount | % |
|---|---|---|
| Rent/Housing | ₹8,000-12,000 | 30% |
| Food & Utilities | ₹5,000-7,000 | 20% |
| Transport | ₹2,000-3,000 | 8% |
| Personal | ₹3,000-5,000 | 12% |
| SIP Investment | ₹5,000-8,000 | 20-25% |
| Emergency buffer | ₹2,000-3,000 | 8% |
Recommended SIP: ₹5,000-8,000/month
Why it works: You likely have lower responsibilities (no EMI, no dependents), making it the best time to build investing habits.
₹40,000-70,000/Month (Growing Career)
| Expense | Amount | % |
|---|---|---|
| Rent/Housing | ₹12,000-20,000 | 28% |
| Food & Utilities | ₹8,000-12,000 | 18% |
| Transport | ₹3,000-5,000 | 7% |
| Personal/Lifestyle | ₹5,000-10,000 | 12% |
| SIP Investment | ₹10,000-15,000 | 20-25% |
| Insurance/Emergency | ₹3,000-5,000 | 7% |
Recommended SIP: ₹10,000-15,000/month
Why it works: Income has grown but responsibilities may be increasing (marriage, car). Balance is key.
₹70,000-1,20,000/Month (Mid-Career)
| Expense | Amount | % |
|---|---|---|
| EMI/Rent | ₹20,000-35,000 | 28% |
| Household | ₹15,000-20,000 | 18% |
| Transport | ₹5,000-8,000 | 7% |
| Kids/Education | ₹5,000-15,000 | 10% |
| Lifestyle | ₹8,000-15,000 | 12% |
| SIP Investment | ₹15,000-30,000 | 20-25% |
| Insurance/Emergency | ₹5,000-8,000 | 6% |
Recommended SIP: ₹15,000-30,000/month
Why it works: Peak earning years with growing responsibilities. Maximize SIP before lifestyle inflation takes over.
₹1,20,000+/Month (Senior Career)
| Expense | Amount | % |
|---|---|---|
| EMI/Rent | ₹35,000-50,000 | 25% |
| Household | ₹25,000-35,000 | 20% |
| Transport | ₹8,000-12,000 | 7% |
| Kids/Education | ₹15,000-30,000 | 15% |
| Lifestyle | ₹15,000-25,000 | 13% |
| SIP Investment | ₹30,000-50,000+ | 20-30% |
| Insurance/Emergency | ₹8,000-12,000 | 7% |
Recommended SIP: ₹30,000-50,000+/month
Why it works: High income allows aggressive investing. This phase builds the bulk of retirement corpus.
The Goal-Based Approach
Instead of percentage-based, calculate SIP based on goals:
Goal: ₹1 Crore in 20 Years
| Expected Return | Required SIP |
|---|---|
| 10% | ₹13,200/month |
| 12% | ₹10,100/month |
| 14% | ₹7,700/month |
Goal: ₹50 Lakh for Child's Education (15 Years)
| Expected Return | Required SIP |
|---|---|
| 10% | ₹12,100/month |
| 12% | ₹9,900/month |
| 14% | ₹8,000/month |
Goal: ₹20 Lakh for Home Down Payment (5 Years)
| Expected Return | Required SIP |
|---|---|
| 8% | ₹27,200/month |
| 10% | ₹25,900/month |
| 12% | ₹24,700/month |
The Step-Up Strategy
Don't stay at the same SIP forever. Increase with salary:
Without Step-Up
| Year | Salary | SIP (Fixed) | % of Salary |
|---|---|---|---|
| 1 | ₹50,000 | ₹10,000 | 20% |
| 5 | ₹75,000 | ₹10,000 | 13% |
| 10 | ₹1,20,000 | ₹10,000 | 8% |
Your SIP becomes irrelevant as income grows.
With 10% Step-Up
| Year | Salary | SIP | % of Salary |
|---|---|---|---|
| 1 | ₹50,000 | ₹10,000 | 20% |
| 5 | ₹75,000 | ₹14,641 | 19% |
| 10 | ₹1,20,000 | ₹23,579 | 20% |
Maintains 20% investment rate throughout.
Wealth Impact
₹10,000/month for 20 years:
- Fixed SIP: ₹99.9 lakh
- 10% step-up SIP: ₹2.43 crore
Step-up creates 2.4x more wealth!
What If You Have Debt?
High-Interest Debt First
| Debt Type | Interest | Priority |
|---|---|---|
| Credit card | 24-40% | Pay off completely |
| Personal loan | 12-18% | Pay off before heavy SIP |
| Car loan | 9-12% | Balance SIP + prepay |
| Home loan | 7-9% | SIP alongside (tax benefits) |
Suggested Split (With ₹3 L Personal Loan)
| Action | Amount | Why |
|---|---|---|
| Personal loan prepay | ₹8,000 | 15% interest = guaranteed return |
| Basic SIP | ₹5,000 | Build habit, don't miss compounding |
| Emergency fund | ₹2,000 | Build 6-month buffer |
Once loan is paid, redirect ₹8,000 to SIP = ₹13,000/month.
Common SIP Allocation Mistakes
1. "I'll Start When I Earn More"
| Start at 25 (₹5K SIP) | Start at 30 (₹10K SIP) | Difference at 50 |
|---|---|---|
| ₹5,000/month × 25 years | ₹10,000/month × 20 years | |
| ₹95.7 lakh | ₹99.9 lakh | Similar! |
Starting 5 years earlier with half the amount gives similar results.
2. Too Many Small SIPs
| Approach | Issue |
|---|---|
| 10 SIPs of ₹1,000 | Hard to track, no focus |
| 2-3 SIPs of ₹5,000 | Manageable, diversified |
Quality over quantity. 3-4 good funds are enough.
3. Not Increasing After Salary Hike
The moment your salary increases, increase SIP:
- Get ₹5,000 hike? → Increase SIP by ₹2,500
- Get 10% hike? → Increase SIP by 5-10%
Lifestyle inflation is the enemy of wealth building.
4. SIP Amount Too Aggressive
If SIP causes cash flow stress:
- You'll skip months
- You'll redeem prematurely
- You'll give up entirely
Better to sustain ₹8,000 for 20 years than ₹15,000 for 3 years.
The Minimum Viable SIP
Can't afford 20%? Start with minimum viable amounts:
| Salary | Minimum SIP | Better | Ideal |
|---|---|---|---|
| ₹25,000 | ₹2,500 | ₹4,000 | ₹5,000+ |
| ₹40,000 | ₹4,000 | ₹6,000 | ₹8,000+ |
| ₹60,000 | ₹6,000 | ₹9,000 | ₹12,000+ |
| ₹80,000 | ₹8,000 | ₹12,000 | ₹16,000+ |
| ₹1,00,000 | ₹10,000 | ₹15,000 | ₹20,000+ |
Even minimum viable SIPs build wealth over time. ₹2,500/month for 25 years at 12% = ₹47.8 lakh.
Your Action Plan
This Week
- Calculate your take-home salary
- List all fixed expenses
- Identify discretionary spending
- Calculate 20% of salary
This Month
- Start SIP with comfortable amount (even 10%)
- Choose 2-3 diversified funds
- Set up auto-debit on salary day
Every Year
- Review SIP amount vs salary
- Increase SIP with salary hike
- Add new goals as they emerge
Conclusion
| Salary | Recommended SIP | Minimum SIP |
|---|---|---|
| ₹30,000 | ₹6,000 | ₹3,000 |
| ₹50,000 | ₹10,000 | ₹5,000 |
| ₹75,000 | ₹15,000 | ₹7,500 |
| ₹1,00,000 | ₹20,000 | ₹10,000 |
| ₹1,50,000 | ₹30,000 | ₹15,000 |
The "right" SIP amount is:
- At least 10% of salary (minimum)
- Ideally 20% of salary (target)
- Comfortable enough to sustain for decades
- Increasing with every salary hike
Start today with what you can. Increase tomorrow when you can. That's the simple formula for SIP success.
Calculate your SIP growth: Use our SIP Calculator to see how your investments compound over time.