Your Guide To Step Up SIP Calculator

What is a Step-up SIP?

Before moving onto the SIP calculator with step up, let’s understand this category better.

As individuals, we all have specific goals and financial aspirations. Whether to create a considerable retirement fund, plan for children’s higher education, or buy a dream home, all such goals require disciplined investment. SIPs certainly present a great option to achieve them. 

However, if you feel you need to increase your investment every year to match your growing requirements or salary increments, you can choose step-up SIPs. Here, the amount that you invest in an SIP increases by a set amount or percentage. 

What is a Step Up SIP Calculator? 

A step up calculator for SIPs is a tool that lets you compute the potential returns of your step-up SIP for a specified period. With this online calculator, you can plan your investments better and make smart decisions to meet your financial aspirations. 

How Does The SIP Step Up Calculator Work?

The step SIP calculator looks at specific factors like your regular investment, the yearly step-up percentage, the duration of investment, and the expected ROI. 

With these details, the calculator provides the estimated future value of your investment. It can also show your total invested amount and the returns made on the same. 

This calculator can be quite helpful to understand how much you can earn by increasing your SIP as per your expected increase in salary. 

SIP Step Up Calculator Formula

While you can easily use this calculator to get the returns, here’s the formula if you’re curious about the exact calculation — 

Step Up SIP Calculator Formula

A* {(1 + r/n)^(nt) – 1} / (r/n) + (M * {(1 + r/n)^(nt) – 1} / (r/n)) 

• A — Initial amount that you invest
• r — Return rate that you expect 
• n — Annual compounding frequency 
• t — SIP period (in years)
• M — Change in the investment amount 

How to Use an SIP Step Up Calculator Online?

To use an SIP calculator with step up online, you can follow some simple steps —

Step 1: Open the page for the step-up calculator. 

Step 2: Enter the following details —

• Amount that you invest currently
• Expected rate of return
• Compounding frequency
• Time of SIP investment
• Percentage change in your regular investment amount 

Step 3: Click on the ‘Calculate’ tab

The tool will display the expected total returns on maturity. It may also show the approximate gains that you may make from your SIP investments. 

Why Use a Step Up SIP Calculator?

Discussed below are the primary advantages of the step up calculator —

• More Suitable Than Regular Calculators: Standard SIP calculators may not have the option to consider periodic increases in investment. This, in turn, can give you inaccurate results. With this type of calculator, however, you can get the correct results, which lets you make investment plans. 
• Easy to Use: To use a step up SIP calculator, you simply need to enter basic details like the step-up percentage, SIP amount, tenure, and expected rate of return. 
• Saves Time and Prevents Errors: With the step SIP calculator, you can swiftly do the calculations without much effort. Furthermore, you can avoid errors in your calculations, which can help you craft your plan better. 
• Easily Available: SIP step up calculators are easily available online — you can use them from anywhere whenever required. 

Frequently Asked Questions: