📈 Step-Up SIP Calculator
Estimate your investment growth with annual step-ups & compounding.
🏦 What is an SIP Calculator?
A Systematic Investment Plan (SIP) Calculator helps investors estimate the future value of their mutual fund investments. By entering details like the monthly investment amount, expected rate of return, and investment tenure, you can calculate how much wealth your SIP can generate over time.
📌 How Does SIP Work?
In SIP, you invest a fixed amount every month in a mutual fund scheme. This amount earns returns based on market performance and benefits from compounding power. Over the years, small monthly contributions grow into a significant corpus.
🧮 SIP Formula
The formula used in SIP calculation is:
FV = P × ( ( 1 + r )n − 1 ) / r × ( 1 + r )
Where:
FV = Future Value of investment
P = Monthly investment
r = Rate of return (per month)
n = Number of months
📝 Example Calculation
If you invest ₹10,000 per month for 10 years at an expected annual return of 12%:
Future Value ≈ ₹23.23 lakhs
Total Investment = ₹12 lakhs
Wealth Gain = ₹11.23 lakhs
💡 This shows the power of compounding in long-term SIPs.
🎯 Benefits of Using an SIP Calculator
✔️ Helps plan financial goals like retirement, child’s education, or buying a house
✔️ Provides an idea of corpus amount at maturity
✔️ Allows easy comparison between different SIP amounts and tenures
✔️ Encourages disciplined investing
🔗 Related Calculators
Lumpsum Calculator
FD Calculator
Inflation Calculator
📚 External References
SEBI – Mutual Funds Basics
AMFI – Mutual Fund Education