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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
How does a Step Up SIP Calculator Work?
A step up sip calculator uses compounding principles to estimate the future value of your investments. Here’s how it works:
- Initial Investment: The calculator prompts you to enter your initial investment amount. This could be the current investment value or the amount you plan to invest when starting your SIP.
- SIP Frequency: Next, you select the frequency of your SIP contributions, such as monthly, quarterly, or annually. This determines how often you will make investment deposits.
- SIP Amount: Enter the initial SIP amount, which is the sum you plan to invest at the start of your SIP.
- SIP Tenure: Specify the duration of your SIP investment in terms of months or years. This will help the calculator calculate the future value of your investments.
- Step-up Percentage: Here’s where the real power of the Step-up SIP Calculator comes into play. You can specify the percentage increase you want to apply to your SIP contributions periodically. This increase can be made at regular intervals, allowing you to match your investments with your growing income or changing financial circumstances.
- Expected Rate of Return: Lastly, enter the expected rate of return for your investments. This can be based on the historical returns of the investment instrument or an informed estimate.
The Calculator processes the provided information and generates a comprehensive report detailing the potential growth of your investments over time.
To illustrate, let’s consider an example: Suppose an investor starts with an initial monthly investment of INR 5,000 in a Step-up SIP with an annual increment rate of 10% for a tenure of 10 years and an assumed average return of 12%.
The Step up SIP Calculator with inflation adjustment will project the future value of the investment, taking into account the increasing investment amount year after year. By adjusting the contribution amount, investors can gauge the potential corpus they can accumulate over time and make informed investment decisions.
Also Read: Lumpsump vs SIP vs Step-up SIP
How to use EduFund's Step Up SIP Calculator?
EduFund’s Step-up SIP Calculator is designed to simplify the investment planning process while offering accurate insights into the future value of your investments. Follow these steps to make the most of this powerful tool:
- Step 1: Visit EduFund’s Step-up SIP Calculator webpage. Open your web browser and navigate to EduFund’s official website. Locate the Step-up SIP Calculator page, which is easily accessible from the homepage or through the website’s search function.
- Step 2: Input initial investment details. Enter the initial investment amount, the SIP tenure, and the expected annual return rate. These values will serve as the baseline for the Step-up SIP calculation.
- Step 3: Configure the step-up settings. Specify the increment rate (in percentage) and the frequency of the increment. This will determine how and when the investment amount will increase during the tenure. Ensure that the settings align with your investment goals and risk tolerance.
- Step 4: Once you’ve filled in the necessary information, click on the “Calculate” button.
- Step 5: Review the projected results: Once you have entered all the required information, the Step-up SIP Calculator will generate a projection chart showcasing the potential future value of your investments. Take the time to analyze the growth curve, evaluate the impact of step-up increments, and assess the suitability of the plan for your financial objectives
- Step 6 Analyze the report to gain insights into the growth trajectory of your investments. This will help you make informed decisions and adjust your investment strategy accordingly.
What are the advantages of using a Step Up SIP Calculator?
- Flexibility and Customization: The Step-Up SIP Calculator empowers investors with the flexibility to adjust their investment amounts as per their changing financial circumstances. It caters to individuals who anticipate an increase in income or have specific financial milestones in the future, allowing them to plan their investments accordingly.
- Enhanced Wealth Creation: By incrementally increasing the investment amount over time, investors can take advantage of the compounding effect. Compounding works by generating returns on both the principal amount and the accumulated returns, resulting in exponential growth. This approach can significantly boost wealth creation potential, especially over long-term investment horizons.
- Mitigating the Impact of Inflation: Inflation erodes the purchasing power of money over time. The Step-Up SIP Calculator helps counteract the impact of inflation by ensuring that investment amounts keep pace with rising prices. By stepping up the investment periodically, investors can maintain the value of their investments and safeguard against the eroding effects of inflation.
- Disciplined Investing: oUR Calculator encourages disciplined investing by automating the process of increasing investment amounts. It eliminates the need for investors to manually monitor and adjust their investments periodically. By setting a predetermined schedule for increasing SIP investments, individuals can stay committed to their financial goals and achieve them with consistency.
- Goal-Oriented Investing: Step-Up SIPs are particularly beneficial for individuals with specific financial goals in mind.
Whether saving for education or retirement, our step up sip calculator with inflation ensures your investments keep pace with rising costs. Start building your wealth today!
Learn more about SIP benefits from AMFI’s guide.
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.
