SIP and step-up SIP, worked out.
A SIP puts the same amount in at the start of each month; a step-up raises it each year. What they come to at a rate you assume, with no forecast.
By Suraj Kumar3 min read
A SIP is a monthly amount put in at the start of each month. Here is what it adds up to.
The formula.
At a monthly rate i over n months, a SIP of C comes to C·((1 + i)^n − 1)/i·(1 + i). ₹5,000 a month at 12% a year for 10 years comes to about ₹11.6 lakh, of which ₹6 lakh is what you put in.
Stepping up.
A step-up raises the monthly amount by a per cent each year, as pay rises; set it under More options.
Returns are not steady.
The answer assumes one steady rate. Real fund returns go up and down, and nothing here is a forecast or advice.
Further reading
Topics: sip calculator · sip formula · step up sip · sip returns · monthly sip
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