# SIP calculator with step-up

Work out what a monthly SIP grows to. Add a yearly step-up, a lump sum on day one, and see the result in today's money with a year-by-year chart.

Interactive calculator (runs in the browser): https://www.trackmysubscriptions.com/tools/sip-calculator

## How the SIP maturity value is calculated

Each monthly instalment is invested at the start of the month and compounds monthly at the expected return divided by 12. With no step-up this is the standard SIP formula: FV = P x ((1 + i)^n − 1) / i x (1 + i), where P is the monthly amount, i the monthly rate and n the number of months.

- **Step-up** raises the monthly amount by a fixed percent once a year, the way many people increase their SIP after a raise.
- **Lump sum** is invested on day one and compounds for the whole period.
- **Inflation** converts the final value into today's money, so you can see what it will really buy.

## Worked example

A INR 10,000 monthly SIP for 10 years at 12% invests INR 12,00,000 and grows to about **INR 23,23,391**. Step it up 10% a year and it grows to INR 33,74,326 on INR 19,12,491 invested. Keep the flat SIP going for 20 years instead of 10 and it reaches INR 99,91,479: doubling the time more than triples the result, which is compounding at work.

## Where the money for a SIP comes from

For many people the easiest SIP is money that already leaves their account every month. A handful of unused subscriptions is often INR 1,000 to INR 3,000 a month. Find them with the [subscription calculator](https://www.trackmysubscriptions.com/build), then point that money at a SIP.

## FAQ

### What is a SIP?

A systematic investment plan: investing a fixed amount every month, usually in a mutual fund, instead of a single lump sum.

### How much will INR 10,000 a month become in 10 years?

About INR 23,23,391 at a 12% yearly return, on INR 12,00,000 invested. Returns aren't guaranteed.

### What is a step-up SIP?

A SIP whose monthly amount rises by a set percentage every year. A 10% step-up on the example above adds a lot because later, larger instalments still compound.

### Is the return in a SIP calculator guaranteed?

No. Market-linked funds go up and down. The calculator shows what a steady average return would produce.