SIP Calculator

Project the future value of a Systematic Investment Plan (SIP) with an optional annual step-up in contribution.

Monthly SIP Amount

Expected Annual Return

Investment Duration

years

Result

Future Value: $8,597,870.72
Total Invested: $3,812,697.80
Total Growth: $4,785,172.92
Final Monthly SIP: $37,974.98

Portfolio ValueInvested

About the SIP Calculator

A Systematic Investment Plan means investing a fixed amount on a regular schedule - usually monthly - rather than a single lump sum. This calculator projects where that plan lands after compounding, with the option to increase the contribution every year the way many real SIPs do.

How It Works

Each month, your contribution is added to the balance and the whole balance compounds at your expected annual return divided across 12 months. If you set a step-up percentage, your monthly contribution increases by that percentage at the start of each new year.

balance = balance × (1 + monthly rate) + monthly contribution, repeated each month; contribution × (1 + step-up %) at each year boundary

Formula & Methodology

Without a step-up, this is the standard ordinary annuity future value calculation applied monthly. With a step-up, there's no single closed-form formula, since the contribution itself changes every 12 months - so the calculator simulates the plan month by month, applying the step-up increase at each year boundary, to get an exact result rather than an approximation.

Examples

Flat SIP

$10,000/month at 12% annual return for 15 years with no step-up grows to roughly $5.0 million, on about $1.8 million invested.

Same SIP with a 10% step-up

Increasing the monthly amount by 10% every year turns the same starting plan into a meaningfully larger final corpus, since later years - when the balance is largest - also carry the biggest contributions.

Advantages

Models a real step-up SIP, not just a flat monthly contribution
Shows year-by-year portfolio growth on a chart, not just the final number
Reports the final year's monthly contribution amount alongside the total

Common Mistakes

Assuming a step-up SIP's final value is a simple multiple of a flat SIP's value
Using an optimistic return rate instead of a conservative long-term estimate
Not accounting for fund fees and taxes, which reduce the actual take-home growth

Edge Cases to Watch For

A 0% step-up produces the same result as a standard flat monthly investment plan, so this calculator can also be used as a plain SIP calculator by leaving the step-up at zero.
The step-up compounds on itself - a 10% annual step-up over 15 years multiplies the final year's contribution by roughly 3.8× the starting amount, not 15 × 10%.
This assumes the return rate holds steady every year - real markets don't move in a straight line, so treat the result as a long-run projection, not a guarantee.

Common Use Cases

Planning a monthly investment plan with annual increases as income grows
Comparing a flat SIP against a step-up SIP for the same starting amount
Estimating how large a retirement or goal-based investment plan could grow

Written & fact-checked by the Calculateus TeamLast updated August 5, 2026How we verify our formulas

Frequently asked questions

What is a step-up SIP?

A step-up (or top-up) SIP increases your monthly investment amount by a fixed percentage every year, rather than keeping it flat - a common strategy as income grows over time. Even a modest 10% annual step-up meaningfully increases the final corpus compared to a flat SIP of the same starting amount.

Is the expected return rate guaranteed?

No - this projects growth mathematically at whatever rate you enter, but actual investment returns vary year to year and aren't guaranteed. Use a conservative rate for planning rather than a best-case assumption.

Does this account for taxes or fees?

No - this shows gross growth before any fund expense ratios, transaction costs, or capital gains taxes, all of which reduce your actual take-home amount.

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Conclusion

A step-up SIP is one of the more effective ways to grow an investment plan without a large upfront commitment - increasing contributions gradually as income grows compounds on top of market returns. Run a flat SIP and a step-up SIP side by side to see exactly how much difference the step-up makes for your specific numbers.