Step-up SIP Calculator

What is a Step-up SIP?

A Step-up SIP (Systematic Investment Plan) is an investment strategy where you start with a fixed monthly investment amount that increases annually at a predetermined rate. This approach allows your investments to grow in line with your increasing income over time.

Benefits of Step-up SIP

• Allows you to increase your investments gradually as your income grows
• Helps combat inflation by increasing investment amounts over time
• Potentially higher returns compared to regular SIPs with fixed contributions
• Provides a disciplined approach to increasing your savings rate over time
• Better suited for long-term financial goals like retirement planning

How to Use This Calculator

To use the Step-up SIP calculator, follow these steps:

1. Enter your initial monthly investment amount
2. Set the annual increase rate (e.g., 10% means your monthly contribution will increase by 10% each year)
3. Specify the expected annual return rate for your investments
4. Set the investment period in years
5. Click the "Calculate" button to see the results

Step-up SIP Example

For example, if you start with a monthly investment of ₹10,000 and increase it by 10% each year for 20 years with an expected return of 12% per annum:

• Year 1: You invest ₹10,000 per month (₹1,20,000 for the year)
• Year 2: Your monthly investment increases to ₹11,000 (₹1,32,000 for the year)
• Year 3: Your monthly investment increases to ₹12,100 (₹1,45,200 for the year)
• And so on...

Over 20 years, the total amount invested would be significantly higher than a regular SIP, potentially resulting in a much larger corpus at maturity.