How this calculation works
Increase the scheduled contribution once a year, starting in month 13. Apply a monthly rate equal to the entered nominal annual assumption divided by twelve. The ordinary SIP calculator holds the monthly contribution constant; this page changes the deposit schedule.
Monthly contribution in year y = initial monthly amount × (1+step-up)^(y−1)A worked example
At zero return, ₹1,000 monthly in year one and a 10% increase to ₹1,100 in year two produce ₹25,200 from 24 deposits.
Good to know
A contribution-growth scenario, not a product return forecast. Return, annual step-up and timing remain fixed assumptions; negative modeled returns are allowed. No tax, fees, inflation or missed payments. Scheduled amounts retain precision internally rather than rounding every future debit to paise.
Reference: OpenStax: annuities and contribution timing (opens in a new tab) ↗
A step-up changes contributions before it changes returns
An annual contribution increase is a separate assumption from investment performance. A higher final balance can come mainly from putting in more money, even if the return rate stays unchanged.
Read total contributions and modeled gain separately. At zero return, ₹1,000 per month for twelve months and ₹1,100 per month for another twelve months total ₹25,200; the extra ₹1,200 is a deposit increase, not an investment gain.
The PPF vs FD contribution calculator uses equal annual contributions under different interest conventions; this step-up SIP calculator grows monthly contributions annually.
The first increase starts in month thirteen
Year one uses the initial monthly contribution for all twelve months. The next year multiplies that monthly amount by one plus the step-up rate. A later increase compounds from the previous year’s scheduled amount.
This timing matters when comparing an offer or a spreadsheet. An immediate increase in month one or an increase every month describes another deposit schedule. Check the annual table before interpreting a difference as an arithmetic error.
Keep rate and timing assumptions separate
The return input is nominal annual percent divided by twelve. Beginning-of-month contributions receive one extra modeled monthly growth interval compared with end-of-month contributions. The effective annual rate calculator can translate that rate convention.
The ordinary SIP calculator is a useful constant-contribution baseline. Compare it with a zero-step-up case here before adding annual increases. A constant-rate model cannot show the sequence of actual market gains and losses or establish a suitable investment plan.
A few questions, answered
Does a 10% step-up mean a 10% investment return?
No. It increases the monthly amount you contribute each year. Investment return is a separate input.
Can the assumed return be negative?
Yes. Negative returns reduce the modeled balance relative to the contributions. The result does not require an investment gain.
Are future monthly contributions rounded to whole rupees?
No. Internal scheduled contributions retain precision. Actual payment instructions may round them, so inspect and adjust a real standing order separately.