Year-by-year growth
| Year | Monthly SIP | Invested | Value |
|---|
The SIP formula
FV = P × [((1 + i)ⁿ − 1) ÷ i] × (1 + i)P is the monthly instalment, i the monthly rate and n the number of months. The final (1 + i) assumes you invest at the start of each month, which is how most SIPs work. With a step-up, the calculator runs the same compounding month by month, raising the instalment every 12 months.
Worked example
₹10,000 a month for 15 years at 12% means ₹18 lakh invested. It grows to roughly ₹47.6 lakh, so about ₹29.6 lakh is pure compounding. Add a 10% annual step-up and you invest about ₹38 lakh, which grows to roughly ₹83 lakh.
Frequently asked questions
How is SIP return calculated?
Each monthly instalment compounds at the monthly equivalent of your expected annual return from the date it is invested until the end of the period. The maturity value is the sum of all those compounded instalments.
What is a step-up SIP?
A step-up (or top-up) SIP increases your monthly instalment by a fixed percentage every year, usually to match salary growth. Even a 10% annual step-up can nearly double the final corpus over 20 years.
What return should I assume?
Returns are never guaranteed. Long-term Indian equity index returns have historically been around 10–12% a year, debt funds 6–7%. Using a conservative figure gives a more realistic plan.
Does this include tax and expense ratio?
No. Enter a return that is already net of the fund’s expense ratio. Capital gains tax on redemption is not deducted.
Results are estimates for educational purposes only and are not investment, tax or financial advice. Verify figures with your broker or advisor before acting on them.