Using the Step-up SIP Calculator
Enter a starting monthly contribution, an assumed nominal annual return and a whole number of years. Set the annual increase to zero for a fixed SIP or enter a step-up percentage to model higher contributions from year two.
Worked example
Use the example inputs below to reproduce this result. These are the form's starting values, not recommended targets. Changing your inputs updates your result above; this worked example stays fixed for comparison. Results are rounded for display.
Example inputs
- Starting monthly contribution
- 5000
- Assumed nominal annual return (%)
- 8
- Years
- 10
- Annual contribution increase (%)
- 10
- Deposit timing
- Beginning of month
Example result
- Step-up final balance
- 1,378,958.6
- Total contributions
- 956,245.48
- Illustrative gain/loss
- 422,713.15
- Fixed-SIP balance (same starting amount)
- 920,828.38
- Balance difference
- 458,130.24
Method and assumptions
Each month applies the supplied nominal annual return divided by 12. Contributions rise once after each complete year, starting in year two. The fixed comparison keeps the starting monthly amount unchanged. Beginning/end-of-month timing is applied consistently. Constant returns are illustrative, not a forecast; excludes fees/taxes.
Reference: investor.gov — method and further reading
Separate contributions from growth
An ending balance can grow because you put more money in, because the assumed return is higher, or because the money has more time to compound. Those are different effects. Keep the contribution schedule consistent when comparing rates, and distinguish a mathematical projection from a return that is contractually guaranteed. Fees and taxes need their own assumptions.
Common question
Does the step-up comparison measure better investment performance?
No. Both projections use the same assumed return and deposit timing. The step-up balance is usually higher because you contribute more money over time. Compare contributions as well as the projected gain before drawing conclusions.