Interest Calculator
🚀

SIP Calculator with Step-Up Multiplier

Simulate disciplined monthly investments and compounding wealth creation.

Live Calculator
Quick Presets:

SIP Investment Parameters

$10$5.0k$10.0k
%
1% (Debt/Liquid)12% (Index Fund)30% (Aggressive Small-Cap)
Yr
1 Year15 Years35 Years
Annual Step-Up SIPMultiplier
Expected Future Value
$344,143

At 11% annualized return after 15 years

Invested Amount

$135.0k

Wealth Gain

+$209.1k

Wealth Distribution

Total Wealth$344.1k

Compound Growth Trajectory

Observe the steep hockey-stick curve as compound interest overtakes cumulative deposits

Year 15 Projection
Invested Capital:$135.0k
Total Portfolio Value:$344.1k
$0$86.0k$172.1k$258.1k$344.1kYr 1Yr 4Yr 7Yr 10Yr 13Yr 15

Year-by-Year Growth Table

YearCumulative InvestedEstimated Profit (Wealth Gain)Total Portfolio Value
Year 1$9,000+$555$9,555
Year 2$18,000+$2,215$20,215
Year 3$27,000+$5,109$32,109
Year 4$36,000+$9,379$45,379
Year 5$45,000+$15,185$60,185
Year 6$54,000+$22,705$76,705
Year 7$63,000+$32,135$95,135
Year 8$72,000+$43,699$115,699
Year 9$81,000+$57,642$138,642
Year 10$90,000+$74,240$164,240
Year 11$99,000+$93,801$192,801
Year 12$108,000+$116,666$224,666
Year 13$117,000+$143,219$260,219
Year 14$126,000+$173,886$299,886
Year 15$135,000+$209,143$344,143
Sponsored Advertisement
ADS

Google AdSense Banner Placement Area

Configure your Publisher ID in src/config/site.ts to display live ads.

Responsive Ad

📐 The SIP Compound Interest Formula

The future value of an ordinary annuity (investing at regular monthly intervals) compounded monthly is calculated as:

M = P × [ ( (1 + i)^n - 1 ) / i ] × (1 + i)
M = Maturity ValueThe total estimated wealth received at the end of tenure.
P = Monthly InvestmentThe regular installment deposited each month.
i = Periodic Return RateAnnual Return Rate / 12 / 100.

SIP vs. Lump Sum Investment: Which is Better?

ParameterSystematic Investment Plan (SIP)Lump Sum Investment
Capital RequiredLow (Starts at ₹500 / $50)High upfront capital required
Market Timing RiskZero; eliminated via Rupee Cost AveragingHigh; buying at a market peak hurts short-term returns
Ideal ForSalaried individuals & long-term goalsWindfalls, bonuses, or property sale proceeds
Emotional DisciplineAutomated bank debit avoids panic sellingRequires high psychological discipline

Frequently Asked Questions about SIPs

What is a Systematic Investment Plan (SIP)?▼

A SIP is an investment route offered by mutual funds where an investor contributes a fixed sum of money at regular intervals (usually monthly) into a chosen mutual fund scheme. It instills disciplined investing and benefits from Rupee Cost Averaging and compound interest.

How does Rupee Cost Averaging work in SIP?▼

When stock markets are high, your fixed SIP installment purchases fewer units. When markets dip, that same installment buys more units. Over long time horizons, this automatically lowers your average cost per unit without needing to time the market.

What is a Step-Up SIP and why is it recommended?▼

A Step-Up (or Top-Up) SIP is a feature that increases your monthly investment contribution by a set percentage (such as 10%) each year. Because people typically receive salary increments annually, stepping up your SIP harnesses compounding on a growing base, often doubling your final corpus over a 15-20 year period.

What return rate should I expect from mutual fund SIPs?▼

Historically, broad equity index funds (such as the Nifty 50 or S&P 500) have delivered 11% to 14% annualized returns over 10+ year periods. Conservative balanced or debt funds typically yield 7% to 9%, while aggressive small/mid-cap funds may deliver 14% to 16% with higher volatility.