Home Finance How to use a step-up SIP calculator to plan for increasing investments over time?

How to use a step-up SIP calculator to plan for increasing investments over time?

by Yolando B. Adams

Over the past few years, mutual funds have become the most preferred investment choice among many. While such investments are prone to market risks, you can simply estimate the returns through an online SIP calculator in the case of regular SIP mode or through an online step-up SIP calculator if you choose to top-up your SIP investment periodically.

By using such online SIP calculators, you can easily get an idea about the returns you can expect from your investments in the market. Read on to learn how to compute your step-up SIP returns using an online increasing SIP calculator, also known as a step-up SIP calculator.

step-up SIP

What is an online SIP step-up calculator, and how to use it?

This simple-to-use online calculator provides you with a rough idea of your investment’s maturity value even before you begin with your market investment. Using the SIP calculator with the step-up option, you can compute your overall mutual fund returns if you periodically increase your SIP contribution. You must input the SIP monthly amount, annual step-up in percentage, expected annualized return rate, and period. Once you input these figures, the overall return on your SIP will be displayed automatically.

When should you use the step-up SIP feature?

Suppose you require Rs 1 crore post 18 years from now, then you must systematically invest Rs 12,000 in the preferred mutual fund at an assumed return rate of 13 percent to build the required corpus. However, if, for some reason, you can invest Rs 8,500 every month initially, this may make you miss your financial goal over the long term.

A simple solution here is to activate step-up SIP mode. Begin with a monthly SIP contribution of Rs 8,500. Gradually enhance the contributions by 15 percent every year. This way, your financial goal corpus of Rs 1 crore will be achieved in 18 years. To compute your monthly contribution towards set-up SIP, you may use the help of an online step-up SIP calculator.


The step SIP mode is particularly helpful when your corpus requirement is so huge that you may not be able to afford the same through your regular SIP plan. By activating step-up SIP, you may consider increasing your future SIP contribution with an increase in your income to reach your financial goal on time. Also, you may consider using the step-up SIP mode to get your financial plan quickly.

As mentioned above, to use your step-up SIP calculator, you must fill out mandatory fields like monthly contribution, expected return rate, and maturity period. If you want to enhance your gift by a specific percentage yearly, fill out the annual step-up (in percentage) field. Once you complete all the required inputs, hit the ‘compute’ option. The result would include your invested amount, expected returns, overall value, growth table, and growth chart. If you are not satisfied with the outcome, you may consider changing any of your inputs in the online SIP calculator to compute a preferred result.

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