Estimate how much your Systematic Investment Plan (SIP) or lumpsum investment can grow over time, including the power of annual step-up.
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Increase your SIP amount by this percentage every year
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The Power of Compounding & Step-Up SIP
A regular SIP harnesses the power of compounding — your returns generate their own returns over time, accelerating wealth creation. By adding an annual step-up (increasing your SIP amount each year), you align your investments with your growing income and can significantly boost your final corpus. Even a modest 10% annual step-up can nearly double your accumulated wealth compared to a flat SIP over a 20-year horizon.
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A Systematic Investment Plan (SIP) allows you to invest a fixed amount regularly (usually monthly) into mutual funds. It automates your investment process and helps you benefit from rupee cost averaging — buying more units when prices are low and fewer when prices are high — reducing the impact of market volatility over time.
What is a step-up SIP and why should I use it?
A step-up SIP (also called a top-up SIP) increases your monthly investment by a fixed percentage every year. For example, a 10% step-up on a ₹10,000 SIP means you invest ₹11,000/month in year 2, ₹12,100/month in year 3, and so on. This helps your investments keep pace with salary growth and can dramatically increase your final corpus thanks to the compounding effect on larger contributions.
SIP vs Lumpsum — which is better?
Neither is universally better. Lumpsum investing can yield higher returns in a consistently rising market since the entire amount benefits from compounding from day one. SIP, however, reduces timing risk through rupee cost averaging and is more practical for salaried individuals investing from monthly income. Many investors use a combination of both.
What return rate should I use in the calculator?
Historical average returns for large-cap equity mutual funds in India have been around 12% per annum over 10+ years, while debt funds typically return 6–8%. Use 10–12% for equity and 6–7% for debt as a reasonable estimate. Keep in mind that past performance does not guarantee future returns, and actual results may vary.
Are SIP returns guaranteed?
No. SIP investments in mutual funds are subject to market risk and returns are not guaranteed. The calculator provides estimates based on the expected annual return you enter. Actual returns depend on market conditions, fund performance, and economic factors. Always read the scheme-related documents before investing.