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Step Up SIP Calculator
Note: The above calculator shows nominal returns. It doesn’t currently adjust for inflation. To estimate real returns, reduce your expected return by the inflation rate (e.g., 12% return – 6% inflation = 6% real return). Alternatively, you can upload the maturity value in the below calculator to get inflation adjusted value.
📉 Inflation Adjusted Step Up SIP Calculator
Step-Up SIP Inflation Adjusted Returns
| Year | Nominal Maturity Value (₹) | Inflation Rate (%) | Inflation-Adjusted Value (₹) | Difference (₹) |
|---|---|---|---|---|
| 1 | 67,200 | 6 | 63,396 | 3,804 |
| 2 | 1,50,528 | 6 | 1,34,093 | 16,435 |
| 3 | 2,49,011 | 6 | 2,09,167 | 39,844 |
| 4 | 3,64,811 | 6 | 2,89,040 | 75,771 |
| 5 | 5,00,918 | 6 | 3,74,626 | 1,26,292 |
Discover how Step-Up SIP helps combat inflation with our calculator!
How to Calculate Step-Up SIP Returns with Inflation Adjustment
Even though our calculator does not directly account for inflation, you can still estimate your real returns (returns adjusted for inflation) using a simple method.
Follow the steps below to understand how inflation affects your SIP maturity amount.
Let’s assume:
Initial SIP: ₹5,000/month
Step-up: 10% annually
Tenure: 10 years
Expected return (CAGR): 12% per annum
Inflation rate: 6% per annum
You can adjust the return by subtracting inflation from the expected return:
Real Return = Expected Return – Inflation Rate
Real Return = 12% – 6% = 6%
Now, instead of using 12% in the SIP calculation, re-calculate using 6% CAGR to understand the inflation-adjusted corpus.
Why Step-Up SIPs Are Ideal for Inflation
Inflation reduces your money’s purchasing power over time, but Step-Up SIPs counter this by allowing you to increase your monthly.
For instance, a ₹5,000 monthly SIP with a 10% annual step-up and 12% return grows to ₹16,87,163 in 10 years, compared to ₹11,65,918 for a regular SIP.
After adjusting for 6% inflation, the Step-Up SIP’s real value is ~₹9,42,000, far outpacing a regular SIP’s ~₹6,50,000, making it ideal for long-term goals like education or retirement.
Use our Step-Up SIP Calculator to plan your inflation-smart investments today.
What is a Step Up SIP Calculator?
A Step-up SIP Calculator is a dynamic and valuable financial planning tool designed to help investors determine the potential growth of their investments through a systematic increase in SIP contributions over time.
Well, unlike traditional SIP calculators that assume a fixed investment amount throughout the investment tenure, the Step-up SIP Calculator takes into account the possibility of increasing the investment amount over time.
It’s ideal for long-term planning, especially with a step up sip calculator with inflation adjustment to maintain your wealth’s purchasing power.
Key features include:
- Dynamic Planning: Adjusts contributions to match rising income.
- Inflation Hedge: Ensures investments keep pace with rising costs.
- Goal Oriented: Supports milestones like education or retirement.
Now, lets compare the power of a step up sip calculator against a regular SIP. The table below illustrates the difference for a ₹5,000 monthly SIP over 10 years with a 12% expected return.
Also Read: What is SIP and how it works?
Step-Up SIP vs Regular SIP Comparison
| Investment Type | Initial Monthly Investment (₹) | Step-Up Percentage (%) | Tenure (Years) | Expected Return (%) | Total Invested (₹) | Estimated Returns (₹) | Maturity Value (₹) |
|---|---|---|---|---|---|---|---|
| Step-Up SIP | 5,000 | 10 | 10 | 12 | 9,56,245 | 7,30,918 | 16,87,163 |
| Regular SIP | 5,000 | 0 | 10 | 12 | 6,00,000 | 5,65,918 | 11,65,918 |
Use our Step-Up SIP Calculator to explore how increasing your investments annually can boost your returns!
Step-Up SIP Growth Progression
| Year | Monthly SIP Amount (₹) | Annual Investment (₹) | Cumulative Invested Amount (₹) | Maturity Value (₹) |
|---|---|---|---|---|
| 1 | 5,000 | 60,000 | 60,000 | 67,200 |
| 2 | 5,500 | 66,000 | 1,26,000 | 1,50,528 |
| 3 | 6,050 | 72,600 | 1,98,600 | 2,49,011 |
| 4 | 6,655 | 79,860 | 2,78,460 | 3,64,811 |
| 5 | 7,321 | 87,846 | 3,66,306 | 5,00,918 |
See how your Step-Up SIP grows over time with our calculator!
What is the formula for Step Up SIP Calculator?
The formula used by a Step-up SIP Calculator to calculate the maturity amount is:
Maturity Amount = P*[(1+r/n)^(n*t)–1]/(r/n)+(S*[(1+r/n)^(n*t)–1]/(r/n))
Where:
P = Initial investment amount
r = Expected rate of return
n = Compounding frequency per year
t = SIP duration in years
S = Increase in investment amount at regular intervals
Also read: Why you should prefer Step Up SIP over traditional SIP
Scenario Analysis for Different Strategies
| Scenario | Initial Monthly SIP (₹) | Step-Up Percentage (%) | Tenure (Years) | Expected Return (%) | Total Invested (₹) | Maturity Value (₹) |
|---|---|---|---|---|---|---|
| Conservative | 5,000 | 5 | 10 | 8 | 7,80,000 | 11,50,000 |
| Moderate | 5,000 | 10 | 10 | 12 | 9,56,245 | 16,87,163 |
| Aggressive | 5,000 | 15 | 15 | 15 | 18,50,000 | 42,00,000 |
Find the best investment strategy with our Step Up SIP Calculator
Frequently Asked Questions
What is a Step Up SIP Calculator?
It’s a tool that helps you estimate how much your SIP investment can grow over time if you increase your contribution amount regularly.
How much should I increase my SIP to beat inflation?
Increase your SIP amount by a fixed percentage (e.g., 5-10%) each year to align with inflation and income growth. For example, if your SIP is ₹10,000 and inflation is 6%, you could increase it by 6-10% annually.
What is the ideal inflation rate to consider in India for SIP planning?
The Consumer Price Index (CPI) inflation in India has averaged 5-6% over the past decade (2015-2025). For long-term planning, assume 6% as a conservative estimate.
Does inflation really affect long-term SIP goals?
A ₹10,000 monthly SIP for 20 years at 12% returns grows to ~₹1 crore nominally. But with 6% inflation, its real value is only ~₹30-35 lakh in today’s terms, insufficient for many goals. Hence, inflation does affect long term goals
What is the advantage of using a Step Up SIP Calculator with Inflation?
It allows flexibility to adjust SIP amounts, potentially boosts wealth creation through compounding, and mitigates inflation’s impact.
Who should use a Step Up SIP Calculator?
It’s ideal for anyone planning SIP investments with expectations of rising income or specific financial goals in mind.
