How is SIP maturity value calculated?
A SIP invests a fixed amount every month into a mutual fund, and each installment compounds at the fund's return rate for the remaining time it's invested. The standard formula is M = P × [((1+r)^n − 1) / r] × (1+r), where P is the monthly investment, r is the monthly rate of return, and n is the total number of installments.
What's a step-up SIP?
A step-up (or top-up) SIP increases your monthly investment amount by a fixed percentage every year — commonly in line with an annual salary hike. Even a modest 10% step-up can meaningfully increase your final corpus compared to keeping the SIP amount flat, since more money gets more time to compound.
Are SIP returns guaranteed?
No — mutual fund returns depend on market performance and are never guaranteed. This calculator uses a single assumed average annual return for simplicity; actual returns will vary year to year, and past performance doesn't guarantee future results. Use a conservative estimate (e.g. 10-12% for equity funds) rather than best-case numbers.