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Step Up SIP Calculator

Step Up SIP Calculator

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Invested amount

₹5.5 Cr

Total wealth generated

₹5.5 Cr

Total surplus

₹5.5 Cr

Step Up SIP Calculator

As individuals, all of us have different financial aspirations and goals. Whether it’s about planning for higher education, creating a robust retirement fund, or buying a dream home, disciplined and systematic investment can play a vital role in achieving these objectives.


Among various investment options available, Systematic Investment Plan (SIP) has grown immensely popular due to its convenience and potential for long-term wealth creation. To help you optimize the advantages of SIP completely, EduFund has introduced a revolutionary tool called the Step-up SIP Calculator.

What is a Step Up SIP Calculator?

A Step-up SIP Calculator is a dynamic and valuable financial planning tool designed to help investors determine the potential growth of their investments through a systematic increase in SIP contributions over time.


Well, unlike traditional SIP calculators that assume a fixed investment amount throughout the investment tenure, the Step-up SIP Calculator takes into account the possibility of increasing the investment amount over time.


This unique feature allows investors to align their SIP contributions with their evolving financial capabilities, enabling them to maximize their returns and achieve their goals more efficiently.

How does a Step Up SIP Calculator Work?

The Step-up SIP Calculator employs a straightforward yet powerful algorithm to estimate the potential value of investments over a given time horizon. The calculator uses compounding principles to provide an accurate estimation of the final corpus. Here’s how it works:


Initial Investment: The calculator prompts you to enter your initial investment amount. This could be the current investment value or the amount you plan to invest when starting your SIP.


SIP Frequency: Next, you select the frequency of your SIP contributions, such as monthly, quarterly, or annually. This determines how often you will make investment deposits.


SIP Amount: Enter the initial SIP amount, which is the sum you plan to invest at the start of your SIP.


SIP Tenure: Specify the duration of your SIP investment in terms of months or years. This will help the calculator calculate the future value of your investments.


Step-up Percentage: Here’s where the real power of the Step-up SIP Calculator comes into play. You can specify the percentage increase you want to apply to your SIP contributions periodically. This increase can be made at regular intervals, allowing you to match your investments with your growing income or changing financial circumstances.


Expected Rate of Return: Lastly, enter the expected rate of return for your investments. This can be based on the historical returns of the investment instrument or an informed estimate.


The Step-up SIP Calculator processes the provided information and generates a comprehensive report detailing the potential growth of your investments over time.


To illustrate, let’s consider an example: Suppose an investor starts with an initial monthly investment of INR 5,000 in a Step-up SIP with an annual increment rate of 10% for a tenure of 10 years and an assumed average return of 12%.


The Step-up SIP Calculator will project the future value of the investment, taking into account the increasing investment amount year after year. By adjusting the contribution amount, investors can gauge the potential corpus they can accumulate over time and make informed investment decisions.

What is the formula for Step Up SIP Calculator?

The formula used by a Step-up SIP Calculator to calculate the maturity amount is:

Maturity Amount = P * [(1 + r/n)^(n*t) – 1] / (r/n) + (S * [(1 + r/n)^(n*t) – 1] / (r/n))



P = Initial investment amount

r = Expected rate of return

n = Compounding frequency per year

t = SIP duration in years

S = Increase in investment amount at regular intervals

How to use EduFund's Step Up SIP Calculator?

EduFund’s Step-up SIP Calculator is designed to simplify the investment planning process while offering accurate insights into the future value of your investments. Follow these steps to make the most of this powerful tool:


Step 1: Visit EduFund’s Step-up SIP Calculator webpage. Open your web browser and navigate to EduFund’s official website. Locate the Step-up SIP Calculator page, which is easily accessible from the homepage or through the website’s search function.


Step 2: Input initial investment details. Enter the initial investment amount, the SIP tenure, and the expected annual return rate. These values will serve as the baseline for the Step-up SIP calculation.


Step 3: Configure the step-up settings. Specify the increment rate (in percentage) and the frequency of the increment. This will determine how and when the investment amount will increase during the tenure. Ensure that the settings align with your investment goals and risk tolerance.


Step 4: Once you’ve filled in the necessary information, click on the “Calculate” button.


Step 5: Review the projected results: Once you have entered all the required information, the Step-up SIP Calculator will generate a projection chart showcasing the potential future value of your investments. Take the time to analyze the growth curve, evaluate the impact of step-up increments, and assess the suitability of the plan for your financial objectives.


Step 6 Analyze the report to gain insights into the growth trajectory of your investments. This will help you make informed decisions and adjust your investment strategy accordingly.

What are the advantages of using a Step Up SIP Calculator?

Flexibility and Customization: The Step-Up SIP Calculator empowers investors with the flexibility to adjust their investment amounts as per their changing financial circumstances.

It caters to individuals who anticipate an increase in income or have specific financial milestones in the future, allowing them to plan their investments accordingly.


Enhanced Wealth Creation: By incrementally increasing the investment amount over time, investors can take advantage of the compounding effect.


Compounding works by generating returns on both the principal amount and the accumulated returns, resulting in exponential growth. This approach can significantly boost wealth creation potential, especially over long-term investment horizons.


Mitigating the Impact of Inflation: Inflation erodes the purchasing power of money over time. The Step-Up SIP Calculator helps counteract the impact of inflation by ensuring that investment amounts keep pace with rising prices.


By stepping up the investment periodically, investors can maintain the value of their investments and safeguard against the eroding effects of inflation.


Disciplined Investing: A Step-Up SIP Calculator encourages disciplined investing by automating the process of increasing investment amounts.


It eliminates the need for investors to manually monitor and adjust their investments periodically. By setting a predetermined schedule for increasing SIP investments, individuals can stay committed to their financial goals and achieve them with consistency.


Goal-Oriented Investing: Step-Up SIPs are particularly beneficial for individuals with specific financial goals in mind.


Whether it’s saving for higher education, a down payment on a house, or retirement, the Step-Up SIP Calculator allows investors to align their investment strategy with their goals. By gradually increasing investments, investors can stay on track and make progress toward achieving their desired milestones.

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