SIP Step-Up Calculator with Growth Chart
Investment Growth Chart
Projection Details
Total Investment: ₹0
Estimated Returns: ₹0
Maturity Value: ₹0
Yearly Breakdown
| Year | Investment | Step-Up | Returns |
|---|
About SIP Step-Up Calculator
The SIP Step-Up Calculator helps investors plan their Systematic Investment Plan (SIP) with increasing contributions over time. This strategy allows you to start with smaller investments and gradually increase them as your income grows, making wealth creation more manageable.
Purpose of the Tool
This calculator is designed to:
- Help investors visualize how increasing their SIP contributions periodically can significantly boost their returns
- Plan long-term wealth creation with realistic contribution increases
- Compare regular SIP vs step-up SIP returns
- Understand the power of compounding with increasing investments
- Make informed decisions about investment amounts and frequency of step-ups
Real-world Examples
Example 1: Riya starts a SIP of ₹5,000 per month at age 25 with a 10% annual step-up. Assuming 12% returns, by age 45 (20 years), she would have invested ₹22.8 lakhs but her corpus would grow to ₹1.12 crores.
Example 2: Amit invests ₹10,000 monthly with 15% step-up every 2 years. After 15 years with 14% returns, his total investment of ₹24.5 lakhs grows to ₹82.3 lakhs.
Example 3: Without step-up, ₹10,000 monthly for 20 years at 12% grows to ₹99.9 lakhs. With 10% annual step-up, the same period yields ₹2.45 crores - nearly 2.5 times more!
Formulas and Algorithms
The calculator uses the following mathematical formulas:
1. Future Value of SIP with Step-Up:
FV = P × [{(1 + r)^n - (1 + g)^n} / (r - g)]
Where:
P = Initial investment amount
r = Monthly return rate (annual return/12)
g = Monthly step-up rate (annual step-up/12)
n = Total number of months
2. Year-by-Year Calculation:
For each period between step-ups:
FV = SIP × [(1 + r)^n - 1] / r × (1 + r)^m
Where m is remaining months after the period
3. Total Investment Calculation:
Sum of all monthly investments over the investment period
Privacy Note
This calculator operates entirely in your browser. No investment data you enter is stored, collected, or transmitted to any servers. All calculations are performed locally on your device for complete privacy.
Frequently Asked Questions
A step-up SIP allows you to increase your investment amount periodically (usually annually) by a fixed percentage or amount. This helps align your investments with your growing income.
More frequent step-ups (like annual vs every 2 years) generally lead to higher returns because you increase your investment amount sooner, allowing more money to compound over time.
Typically 10-15% annually aligns with average salary growth. Choose a percentage you can sustain without straining your finances.
Yes, most funds allow decreasing SIP amounts, but step-up is designed to gradually increase investments as your capacity grows.
Projections are mathematical estimates based on your inputs. Actual returns may vary due to market fluctuations and fund performance.
Step-up SIP typically generates higher returns because you invest more over time. However, it requires commitment to increase investments periodically.
This calculator assumes a fixed percentage. In practice, some funds allow variable increases, but fixed percentages are easier to plan.
Missing occasional step-ups won't significantly impact long-term returns, but consistent step-ups yield the best results.
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