Step Up SIP Calculator

There are four types of SIP:

Step Up SIP: When an investor increases the investment amount at regular time intervals, that type of SIP is called Step up SIP.
Flexible SIP: When an investor is in control of increasing, decreasing or skipping the SIP for a specific reason it is called as Flexible SIP. This type of SIP enables the investor to increase his investment amount when he has surplus of funds or decrease or skip the monthly SIP due to a cash crunch.
Perpetual SIP: When an investor has not decided an end date to the SIP it is called as Perpetual SIP, these kind of SIPs can redeemed whenever the need for the fund arises or the financial goal is achieved.
Trigger SIP: When an investor wishes to make an investment based on event which might help him select the NAV and index level.  

FV = P [ (1+i)^n-1 ] * (1+i)/i
FV = Future value or the amount you get at maturity.
P = Amount you invest through SIP
i = Compounded rate of return
n = Investment duration in months

Flexibility and Customisation: As a tool, the Step-Up SIP Calculator empowers investors to adjust their investment amounts as per their changing financial circumstances.

Provide flexibility to individuals' income, which might increase in the near future or have specific financial milestone in the future, allowing them to plan their investments accordingly.

Enhanced Wealth Creation: An incremental increase in the investment amount over a period of time enables the investors to take advantage of the compounding effect.

The compounding effect helps investors generate returns on both the principal and the accumulated returns, enhancing the chances of exponential growth. This gives a significant boost to the potential for wealth creation, especially for investors with long-term horizons.

Mitigating the Impact of Inflation: The purchasing power of money erodes due to inflation. To formulate a countermeasure to inflation, the calculator ensures that the investment amounts keep up with the rising prices.

Disciplined Investing: A Step-Up SIP Calculator acts as a catalyst for disciplined investing and pushes an individual to increase investment amounts to tackle inflation.

Regular SIP at Age 30 -
Let’s say you are 30 years old and decide to put Rs 10,000 into a regular SIP every month. Your target is to have a total of Rs 1 crore by the time you reach 50. Based on SIP calculators, if you continue to invest Rs 10,000 monthly for the next 20 years with a 12% compound annual growth rate (CAGR), your investment will reach around Rs 1 crore (Rs 99,91,479). Out of this amount, Rs 24,00,000 will be your total contributions, while the remaining Rs 75,91,479 will be your estimated capital gains.

Step-Up SIP at Age 30 -
Imagine starting your monthly SIP at age 30 with Rs 10,000 and choosing a 10% annual increase in contributions. With this Step-Up SIP and a 12% CAGR, your investment could grow to almost Rs 2 crore (Rs 1,98,88,715) in 20 years. Your total investment would be Rs 68,73,000, resulting in an estimated capital gain of Rs 1,30,15,716. Additionally, you could reach a corpus of Rs 1 crore in just 16 years by investing Rs 43,13,968 and gaining Rs 60,06,289. This strategy allows for significant growth in your investment over time, providing a substantial return on your initial contributions.

Yes, you can always step up you existing SIPs