Step-Up SIP Calculator

What is a Step-Up SIP?

A Step-Up Systematic Investment Plan (SIP) allows investors to increase their monthly contributions periodically, typically annually, to match their growing income or financial goals.

Understanding SIP Calculations

The SIP calculator uses a formula based on compound interest to calculate your returns. The formula is:

Future Value (FV) = P × [(1 + r)^n - 1] / r × (1 + r)

Where:

• FV: Future Value of the investment (the amount you will have at the end).
• P: Monthly Investment Amount.
• r: Expected Rate of Return per month (annual return divided by 12).
• n: Total number of monthly installments (investment period in years × 12).

By plugging in these values, the SIP calculator gives you an estimate of the final corpus that your SIP could generate.

Example of SIP Calculation

Let’s consider an example:

• Monthly Investment: ₹5,000
• Investment Period: 10 years
• Expected Rate of Return: 12% annually (or 1% per month)