A step-up SIP is also called growth SIP or top-up SIP. You can start with investing an initial sum and then slowly increase till it reaches a final amount. For instance, if the amount is ₹1,000 per month and you specified a step-up of 10%, it will reach ₹1,100 in the second year and ₹1210 in the third. It will continue in the same manner through the tenure. The step-up SIP calculator helps find the approximate returns and maturity value. It is a web-based application that requires you to fill up a few mandatory fields. The calculations are done automatically and an accurate result is displayed within a few seconds.
A step-up SIP lets you build up or ‘step-up’ the amount as you earn more. You can invest a small amount weekly, monthly or quarterly as per your current financial capabilities. Below is a detailed guide on the role of the SIP calculator with step-up.
Step-Up SIP Calculator
Fill in details like monthly contribution, expected return and maturity. Input the ‘Increase Contribution/year’ field if you wish to increase a certain percentage of investment every year. Now all you have to do is simply click on the ‘Calculate Now’ button to receive the results that include profits and returns. A few advanced SIP calculators with step-ups let you see the growth chart and growth table. Top-up calculators or Step-Up calculators give you the future value of your SIP investment when it is increased annually by a certain percentage.
Having a step-up SIP calculator in hand can help reach your goals of retirement, child education, buying a property and marriage smoothly. You can set a target amount as per your requirements and then achieve the same over a while by deciding on a suitable SIP with the calculator. It does not consider the exit load and expense ratio.
The monthly investment amount would be the one you wish to save every month, expected returns are the amount you expect the investment to generate and maturity is the number of months you are planning to run the SIP. But the result is mostly a rough estimate since debt and equity markets are subject to fluctuations.
The Benefits of Mutual Fund SIP Calculator with Step Up
SIP is one of the easiest forms of investment compared to lump sum. This makes it an ideal choice for young adults like millennials. An efficient calculator can help:
- Better focus on your investment by telling how far you are from your target
- Prioritise investment and increase the amount of the present sum is too low.
- Pick the right fund that will suit your requirements the best.
Using a SIP calculator with annual increments can help you know the final corpus. It is easy to use, free of cost and can be accessed from anywhere. A step-up SIP is a better choice than a conventional SIP since you can expand your savings as and when income rises. It is possible to stop the investment for up to 3 months in case of a financial crunch.