Step Up SIP Calculator

The step-up SIP calculator shows how your investments can grow when you increase your SIP contributions regularly. This approach is a smart way to invest more effectively. By raising your contributions over time, you can take full advantage of compounding, helping your savings grow faster and get you closer to your financial goals.

With this calculator, you can estimate the future value of your investments by entering your monthly investment amount and expected rate of return. It also lets you plan how much you want to increase your contributions.

This tool is especially helpful for long-term goals like retirement, buying a home, or funding education. It shows how regular increases can boost your overall returns. Using the calculator, you can make better decisions about your investment strategy and ensure it fits your changing financial goals.

A step-up SIP calculator is a useful tool that estimates how much your investments could grow when you increase your SIP contributions periodically.

Here’s how it works :

• Initial Investment: You begin by entering the monthly amount you plan to invest. For example, if you start with ₹5,000 per month.
• Investment Duration: You then select the number of years you want to continue the investment. For instance, 10 years.
• Annual Step-Up Percentage: Enter the percentage increase you want to apply annually to your SIP. For example, if you choose to increase your SIP by 10% each year, the second year’s SIP would be ₹5,500, and the third year’s would be ₹6,050.
• Expected Rate of Return: Add the percentage of return you anticipate from the mutual fund, say 12% per annum.

Once these details are filled in, the calculator computes the projected value of your investments and estimated returns over time by factoring in the incremental SIP contributions and compounding.

The step-up SIP calculator uses a formula to determine the estimated future value of your investments.

Here is a breakdown of the formula:

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

Variables included:

• 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.

This formula helps you calculate how your investment grows over time, including the monthly amount and any increases you make during the SIP period. By entering these details into the step-up SIP calculator, you can estimate how much your SIP might be worth.

For example, if you start with an initial investment of ₹5,000, with an annual step-up of 10%, over 10 years at an interest rate of 12%, the maturity amount would be approximately ₹16,87,163. This means you would have invested around ₹9,56,245, and the estimated returns would be ₹7,30,918. The calculator shows these values, allowing you to track the possible growth of your investment.

The Kotak Securities Step-Up SIP Calculator assists you in planning your investments by allowing you to incrementally raise your monthly SIP contributions over time.

Here's how you can use it:

• Start by inputting your desired monthly SIP amount. For instance, if you want to begin with ₹5,000 per month, enter this amount.
• Specify how much you want to increase your SIP annually. Let’s take 10% every year, for example.
• Choose the investment tenure. If you plan to invest for 10 years, enter that.
• Fill in the expected rate of return. For example, if you anticipate a return of 12%, input that.
• After filling in all the fields, the estimated growth of your investment will be displayed automatically.

The calculator will display your total invested value at maturity, estimated returns, and the total value of investment in the tenure mentioned.