How the SIP is calculated
Each monthly instalment is invested at the start of the month and grows at the monthly rate i = yearly rate ÷ 12, the convention most Indian brokers and fund houses use. Without step-up, the value after n months is:
Value = P × ((1 + i)^n − 1) ÷ i × (1 + i)
With a step-up, the monthly amount rises by the step-up percentage after every 12 months, and each instalment compounds from the month it's made.
Example
₹10,000 a month at 12% for 10 years: i = 1%, n = 120. You invest ₹12,00,000 and end with about ₹23,23,391. With a 10% yearly step-up, you invest ₹19,12,491 and end with about ₹33,74,326.
What this doesn't include
- Taxes (for example capital-gains tax), expense ratios and exit loads.
- Ups and downs: real returns vary from year to year; the calculator assumes a steady average.
- Inflation: ₹23 lakh in 10 years buys less than ₹23 lakh today. See the inflation calculator.
Estimates for planning, not financial advice. Last reviewed 4 October 2026.
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