Step-Up SIP Calculator: Formula and Examples
Project regular monthly investments using an assumed annualized return.
How the calculation works
The monthly investment increases once every 12 deposits by the entered step-up percentage. Contributions and growth are shown separately.
Step-Up SIP formula
Monthly growth factor = (1 + annualized return)^(1 ÷ 12). Apply the factor and monthly investment for each month.
Worked example
At 0%, investing ₹5,000 monthly for 12 months accumulates ₹60,000. Investment growth is additional when the assumed return is positive.
Inputs, assumptions, and interpretation
Amounts and rates apply only to the defined scenario. For projections, returns remain constant and timing follows the selected input. Taxes, market variability, and unentered costs are excluded.
Displayed values are rounded, while calculations use unrounded numbers. The charts show modeled values rather than historical performance. For background, see Investor.gov introduction to investment returns.
Frequently asked questions
Are the default rates guaranteed?
No. Default inputs illustrate how the calculation works. Enter rates and contribution amounts relevant to your scenario, and review the applicable account or scheme terms.
Why might an actual statement differ?
Actual payment dates, compounding conventions, changing returns, fees, tax treatment, and account rules can differ from a simplified projection.
How should I interpret a negative result?
Some comparisons or value changes can be negative, including investment losses or a gap between alternative scenarios. Read the result labels to distinguish a balance from a change in value.