What is annual step-up in SIP?

Annual step-up means increasing your SIP amount every year, usually to match salary growth or inflation. Even a small step-up can significantly increase the final corpus.

Are SIP returns guaranteed?

No. SIP returns from mutual funds are market-linked. This calculator uses an expected annual return only for planning and comparison.

Should I use SIP or lumpsum investing?

SIP works well for regular income and disciplined investing, while lumpsum works when you already have surplus capital and can tolerate market timing risk.

ଅର୍ଥ

SIP Calculator

Calculate the maturity value of a monthly SIP with expected annual returns, tenure, and optional yearly step-up contributions.

Key terms

ଇନପୁଟ୍ ବଦଳାନ୍ତୁ

Monthly SIP amount

INR

500500000

Expected annual return

030

Investment duration

Years

140

Annual step-up

025

ସୂତ୍ର ବ୍ୟାଖ୍ୟା

FV = sum of each monthly SIP x (1 + r) ^ remaining months

A SIP grows because every monthly installment compounds for a different number of months. When step-up is used, the monthly SIP amount increases each year before being compounded.

Step-by-Step Example

1Convert annual return to monthly return: monthly rate = annual return / 12 / 100.
2For every month, calculate that month's SIP amount after applying annual step-up if any.
3Compound each installment from its investment month until the end of the tenure.
4Add all compounded installments to get maturity value, then subtract invested amount to estimate returns.

Sources & assumptions

SEBI Investor: compound interest

Compounding principles. Returns are assumptions, not guaranteed investment performance.

Reference

ବେଞ୍ଚମାର୍କ ଟେବଲ୍

Compare common scenarios quickly. Scroll horizontally on smaller screens.

Reference 1

Monthly SIP: INR 5,000
Return: 12%
Tenure: 10 years
Step-up: 0%
Maturity: INR 11.6 L

Reference 2

Monthly SIP: INR 10,000
Return: 12%
Tenure: 15 years
Step-up: 0%
Maturity: INR 50.5 L

Reference 3

Monthly SIP: INR 10,000
Return: 12%
Tenure: 15 years
Step-up: 10%
Maturity: INR 82.5 L

Reference 4

Monthly SIP: INR 25,000
Return: 12%
Tenure: 20 years
Step-up: 10%
Maturity: INR 4.9 Cr

Monthly SIP	Return	Tenure	Step-up	Maturity
INR 5,000	12%	10 years	0%	INR 11.6 L
INR 10,000	12%	15 years	0%	INR 50.5 L
INR 10,000	12%	15 years	10%	INR 82.5 L
INR 25,000	12%	20 years	10%	INR 4.9 Cr

ସାଧାରଣ ପ୍ରଶ୍ନ

It compounds every monthly investment separately using the expected monthly rate and then adds the future value of all installments.

Estimated maturity value

INR 50.46 L

ବିବରଣୀ