Comprehensive Guide
Learn more in our Investing Guide.
How it works
A SIP invests the same amount every month. The step-up version raises that amount by a percentage each year — modelling what happens when salary increases flow into the plan. The engine compounds monthly at the expected return, applying the stepped-up contribution for each of the 12 months of its year, and accumulates the year-by-year breakdown of invested versus growth. The step-up is the quiet multiplier: a flat $10,000 monthly SIP over 15 years at 12% builds about $5.0M; adding a 10% annual step-up raises the invested total to roughly $3.4M and the corpus to near $9M — the same habits, amplified by the raises you already get. The engine also reports the effective return, showing what compounding did relative to what you put in. Returns are not guaranteed — the input rate is your expectation, and the honest use of this tool is comparing scenarios, not promising outcomes. Every field in this calculator exists for a reason. Enter Monthly SIP amount, Expected annual return, Investment period, Annual step-up, Future value, and the engine recomputes the results instantly — no signup, no email, and nothing is sent to a server, because the math runs entirely in your browser. Change one input at a time to see which lever moves the result most; that sensitivity, not any single number, is usually the real insight. The worked example below the form uses realistic defaults so you can sanity-check the output before trusting it with your own figures, and the formula is published on the page so you can verify every step of the arithmetic yourself.Formula
Balance = Σ month(monthly x stepup^(year-1)) compounded at rate/12
Tips
- A 10% step-up matches the typical annual raise — automate it on the anniversary of your raise.
- Compare the flat SIP against the step-up to see what your raises are worth in the plan.
- Use 10-12% for equity-heavy plans in growth markets, 7-8% for conservative ones.
- The step-up works only if the extra goes to the plan before lifestyle absorbs it — same discipline, bigger numbers.
Frequently asked questions
What is a SIP?
A systematic investment plan invests a fixed amount at a fixed interval (usually monthly) into a mutual fund or portfolio. It enforces discipline and benefits from rupee-cost averaging — buying more units when markets dip — which is why it is the standard approach for long-horizon investing.
What is a step-up SIP?
A step-up SIP increases the monthly amount by a set percentage each year, matching salary growth. It is the single best upgrade to a flat SIP: the raise you were going to spend instead compounds in the market, and the engine shows the dramatic effect on the final corpus.
What return should I assume?
Equity-heavy mutual funds have historically returned 10-13% annually over 15+ year periods, but there is no guarantee. Run this calculator at 10% and 12% and plan around the lower number; the upper one is upside, not a promise.
How is a SIP different from a lump sum?
A SIP spreads purchases over time, averaging price risk; a lump sum gets everything working immediately. Historically, lump sums edge out DCA in rising markets while SIPs reduce the psychological risk of buying at a peak — many investors use SIPs precisely because they remove the timing question.