SIP Calculator (with Step-up)
Estimate your mutual fund SIP returns with optional annual step-up. See year-by-year growth and total wealth gained.
How a SIP builds wealth
A Systematic Investment Plan (SIP) invests a fixed amount in a mutual fund every month. Because each instalment compounds for a different length of time, the earliest contributions grow the most — and the total corpus can be several times what you actually invested.
The formula
FV = P × ((1+i)n − 1) ÷ i × (1+i), where P = monthly amount, i = monthly return (annual ÷ 12 ÷ 100), and n = number of months. A step-up SIP increases P by your chosen percentage every 12 months.
Worked example
Investing ₹10,000 a month at an assumed 12% for 15 years means you contribute ₹18,00,000 — but the corpus grows to roughly ₹50 lakh. Adding a 10% annual step-up pushes both your contributions and the final value substantially higher.
Why step-up matters
Your income usually rises every year, so a flat SIP becomes a smaller share of your earnings over time. Stepping up the amount keeps your savings rate constant and compounds the extra contributions for years. The year-wise chart shows invested versus value side by side.
How to use this calculator
Set your monthly amount, expected return, duration, and optional annual step-up. The result shows your total invested, estimated returns, maturity value, and a year-by-year growth chart.
Frequently asked questions
How is SIP maturity calculated?
Each monthly instalment is compounded at the expected monthly return until the end of the period. The future value of a regular monthly SIP is FV = P × ((1+i)^n − 1) ÷ i × (1+i), where P is the monthly amount, i is the monthly return, and n is the number of months.
What is a step-up SIP?
A step-up (or top-up) SIP increases your monthly contribution by a fixed percentage every year — usually in line with salary growth. Even a 10% annual step-up dramatically increases your final corpus, as the calculator shows.
Are SIP returns guaranteed?
No. SIPs invest in market-linked mutual funds, so returns vary and can be negative in the short term. The expected-return input is an assumption for planning, not a promise.
What return rate should I assume?
Historically, diversified equity funds have returned roughly 10–13% over long periods, debt funds less. Use a conservative figure and review periodically. This tool defaults to 12% as an illustration.
Is SIP better than a lumpsum?
SIPs average your purchase price over time (rupee-cost averaging) and suit regular savers. A lumpsum can do better if invested at the right time but carries timing risk. Compare both using our lumpsum calculator.
Are SIP returns taxable?
Yes. Equity fund gains are subject to capital gains tax; the rate depends on holding period. Consult a tax adviser for your specific situation.
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Disclaimer: These calculators provide estimates for general information only and are not financial, tax, or investment advice. Figures use FY 2025-26 (AY 2026-27) rules and standard assumptions; your actual numbers may differ. Verify with a qualified professional before acting.