SIP calculator for India: monthly SIP with step up
Enter a monthly amount, a yearly step up, an assumed return and the years to see the amount invested and an estimate of what it could grow to.
Results
Estimated value at the end
0.00
At the return entered, held steady every year. Real returns vary, so this is an illustration, not a forecast.
- Estimated value at the end
- 0.00
- Total invested
- 0.00
- Estimated returns
- 0.00
- Monthly SIP in the last year
- 0.00
- Monthly rate used
- -
| Year | Monthly SIP | Invested in the year | Total invested | Value at year end |
|---|
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For information only, not financial, tax or legal advice.
Last updated . Method checked . Methodology
A systematic investment plan, or SIP, puts a fixed sum into a mutual fund every month. Many people raise that sum each year as their pay rises, which is called a step up. Enter the monthly amount, the step up percent, the yearly return you want to assume and the number of years. The calculator shows the total you would put in, an estimate of the value at the end, the difference between the two, and a row for every year that you can download as CSV. The return is the one figure here that nobody knows in advance. Equity and debt funds do not pay a set rate, and their value can fall as well as rise, so treat the result as an illustration of what the chosen rate would produce and not as a forecast. Nothing typed on this page is stored or sent.
How to use the SIP Calculator
- Enter the monthly SIP amount for the first year.
- Enter the step up, the percent the amount rises each year. Tip: Use 0 for the same amount every month.
- Enter the yearly return to assume and the tenure in whole years.
- Read the total invested, the estimated value and the year by year table.
Worked example
A monthly SIP of 10,000 that rises by 10% each year for 10 years, at an assumed 12% a year. The return is an illustration, not a forecast. All figures are INR.
| Input | Value |
|---|---|
| Monthly SIP | INR 10,000.00 in year 1 |
| Step up | 10% each year |
| Expected return | 12% a year |
| Tenure | 10 years, 120 installments |
Monthly rate i = 1.12^(1/12) - 1 = 0.9489% Monthly amount by year: 10,000, 11,000, 12,100, 13,310, 14,641, 16,105.10, 17,715.61, 19,487.17, 21,435.89 and 23,579.48 Total invested = 12 x the sum of those amounts = 19,12,491 Each month: balance = (balance + installment) x 1.009489, for 120 months Estimated value = 32,68,898.53, so the estimated returns are 13,56,407.53
- Estimated value at the end
- INR 32,68,898.53
- Total invested
- INR 19,12,491.00
- Estimated returns
- INR 13,56,407.53
- Monthly SIP in the last year
- INR 23,579.48
- Monthly rate used
- 0.9489%
The same figure comes from adding up each year's twelve installments as an annuity paid at the start of each month and growing every year's total to the end at 12% a year.
How the SIP estimate is worked out
i = (1 + r)^(1/12) - 1, with r the yearly return as a fraction
Amount in year y = amount in year y - 1 x (1 + step up), rounded to the paisa
Each month: balance = (balance + amount) x (1 + i)
Estimated value = balance after the last month; estimated returns = estimated value - total invested
The calculator follows the money month by month. On the first day of each month the installment joins the balance, and the whole balance then grows for one month at the rate i. After the last month the balance is the estimated value, rounded to the paisa. The total invested is simply every installment added up.
The monthly rate comes from the yearly return entered, r, as (1 + r)^(1/12) - 1. Compounded over twelve months that rate gives back exactly r, so an assumption of 12% a year means 12% a year and not 12.68%. At 12% the monthly rate is about 0.9489%, shown under the result.
The step up raises the monthly amount at the start of years 2, 3 and so on, each time by the percent entered on the amount of the year before, rounded to the paisa. A 10% step up therefore compounds: the tenth year's amount is 10,000 x 1.1^9, about 23,579. With a step up of 0 the plan is a flat SIP.
The year table shows the amount, what went in that year, the running total and the value on the last day of the year. With a return of 0 the value always equals the total invested, which is a simple check of the arithmetic.
Everything rests on the return typed in, and that return is an assumption. Mutual fund units are bought at a price that changes every day, so the real value at the end depends on the path of the market and on when each installment was invested. The estimate here holds the rate steady to show the effect of time, amount and step up, and it is not a forecast of any fund. Costs inside a fund are taken to be part of the return, and tax on gains is not deducted.
Frequently asked questions
How is the SIP value worked out?
Each installment is added at the start of its month and the whole balance grows for the month at i = (1 + r)^(1/12) - 1, where r is the yearly return. At 12% that is 0.9489% a month. Ten thousand a month for 10 years with no step up puts in 12,00,000 and comes to an estimated 22,40,358.90 at that rate.
Why not just divide the yearly return by 12?
A monthly rate of r / 12 compounds to more than r over a year: 1% a month grows 100 to about 112.68, not 112. Using (1 + r)^(1/12) - 1 makes twelve months of growth equal exactly the yearly return entered, so a 12% assumption means 12% a year. Some calculators use r / 12, which gives a slightly higher figure.
What does a step up do?
It raises the monthly amount at the start of each year by the percent entered. With a 10% step up, 10,000 a month becomes 11,000 in year 2 and 23,579.48 in year 10. Over 10 years at 12% that puts in 19,12,491 and comes to an estimated 32,68,898.53, against 22,40,358.90 without the step up.
Are SIP returns guaranteed?
No. A mutual fund's value follows the market, so the return over any stretch can be higher, lower or negative, and past returns do not set future ones. The rate typed here is held steady only so the arithmetic can be shown. With a 0% return the estimated value equals exactly what was put in.
Is tax on the gains taken off?
No. The estimated value is before any tax, exit load or stamp duty. Tax on mutual fund gains depends on the kind of fund, how long each unit was held and the rules in force when units are sold, so it is left out rather than guessed. Costs inside the fund are taken to be part of the return entered.