How to use this calculator
- Enter your monthly investment amount, e.g. 500.
- Enter an expected annual return — use a conservative figure based on your target fund's long-term history.
- Optionally set an annual step-up (e.g. 10% means your monthly amount grows 10% each year).
How it works
Monthly simulation: balance = balance×(1+i) + contribution
i is the monthly rate (annual ÷ 12). At each year-end the monthly contribution is raised by the step-up percentage. Results are nominal, pre-tax figures and not a guarantee.
Frequently asked questions
Does SIP investing actually work?
A SIP smooths your entry price by buying through highs and lows, reducing timing risk. Returns still depend on the underlying asset — broad equity indexes have historically returned roughly 5–8% annually over long periods, with no guarantee.
What return should I assume?
Use a conservative estimate from the asset's long-term history: 5–8% for broad equity indexes, less for bonds. Try several values to compare optimistic, neutral, and pessimistic scenarios.
What is a step-up SIP?
A step-up (or top-up) SIP raises your monthly contribution by a fixed percentage every year — e.g. 500/mo with a 10% step-up becomes 550/mo in year two. It mirrors how incomes typically grow.
Is inflation accounted for?
No — figures are nominal. To see real purchasing power, subtract expected inflation from the return, or use the Inflation Calculator.
Disclaimer Results are for reference only and do not constitute financial, tax, or legal advice. Actual rates, returns, and fees depend on the terms of your financial institution.