Project SIP returns with annual step-up and inflation adjustment. See nominal and real (post-inflation) corpus.
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Typical 5-15% (matches annual salary increment)
India CPI averaged ~5-6% over 2020-2024; RBI target 4% with 2-6% tolerance band
Backtest a SIP against any Indian mutual fund's real NAV history. CAGR + XIRR side by side. Lumpsum mode supported.
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nps calculatorTL;DR
Project step-up SIP returns with annual increment (% or fixed Rs) and inflation adjustment. See real (post-inflation) corpus alongside nominal - most calculators show only the nominal headline, which overstates how much your future corpus is actually worth in today's rupees. Note: real-corpus is sensitive to your inflation assumption (default 6%). India CPI averaged ~5-6% over 2020-2024; RBI inflation target is 4% with a 2-6% tolerance band. Tool projects future returns from your assumed rate; actual fund performance varies and past performance is not indicative of future results.
| Compounding | Monthly, begin-of-period (annuity due) |
| Default return | 12% per annum (industry-standard equity MF assumption) |
| Step-up modes | Off / Percent of current SIP / Fixed Rs increment |
| Step-up cadence | After every completed year (typical: aligned with annual salary increment) |
| Default inflation | 6% per annum; India CPI averaged ~5-6% over 2020-2024 (RBI target 4%, tolerance band 2-6%) |
| Max tenure | 40 years |
| Tax regime applicable | Equity MFs: Section 112A LTCG (held > 12 months), Section 111A STCG (held ≤ 12 months) - calculator does NOT compute tax; see Tax section below |
| Where computation happens | 100% in your browser; no upload, no signup, no PII collected |
| Companion tool | Use Mutual Fund SIP Backtest for historical NAV-based simulation against actual fund performance |
A regular SIP keeps your monthly contribution constant for the entire tenure. A step-up SIP raises the contribution every year, usually in line with your annual salary increment. The combined effect of higher principal in later years AND compounding on the higher amount produces materially larger corpora over 15-25 year horizons.
Worked example: Rs 5,000/mo SIP at 12% expected return for 20 years builds about Rs 50 lakh nominal corpus. The same Rs 5,000/mo with a 10% annual step-up builds about Rs 1 crore - double the corpus, but mostly because you end up investing about 2.86x more over the 20 years (Rs 34 lakh vs Rs 12 lakh) rather than because of any compounding magic. In fact each year's step-up has progressively fewer years left to compound, so the per-rupee wealth gain ratio is lower for step-up SIP (about 1.9x your invested amount) than for flat SIP (about 3.2x). The headline corpus is bigger because the contribution itself is bigger; the step-up advantage is the ability to scale your investment with your income.
The tool uses begin-of-period (annuity due) compounding: each monthly SIP is contributed at the start of the month and earns interest for the full month. The standard SIP closed-form formula is FV = P x ((1+i)^n - 1) / i x (1+i), where i is the monthly rate (annual return divided by 12 divided by 100) and n is total months.
For step-up SIP, the calculator iterates month-by-month. After each completed year, the monthly SIP is increased by the step-up amount (percent of current SIP or fixed Rs), then continues compounding. Real (inflation-adjusted) corpus is computed by deflating the nominal corpus: real = nominal / (1 + inflation rate / 100) ^ years.
Both scenarios start with Rs 10,000/month at 12% expected annual return for 20 years. Inflation assumed 6% for the real-corpus column.
| Scenario | Total Invested | Nominal Corpus | Real Corpus |
|---|---|---|---|
| Flat Rs 10K/mo | Rs 24.00 lakh | Rs 99.91 lakh | Rs 31.15 lakh |
| + 5% annual step-up | Rs 39.68 lakh | Rs 1.37 crore | Rs 42.83 lakh |
| + 10% annual step-up | Rs 68.73 lakh | Rs 1.99 crore | Rs 62.01 lakh |
| + 15% annual step-up | Rs 1.23 crore | Rs 3.03 crore | Rs 94.34 lakh |
Notice: the absolute gap between nominal and real corpus widens with step-up simply because the nominal corpus is larger - the deflator (1.06^20 ~ 3.21x for 6% inflation over 20 years) is the same in every row, so the real-to-nominal ratio is constant at about 31% across all four scenarios. What changes is the absolute value, not the proportional erosion. Real corpus is the right number to plan against for goals like retirement or a child's education, because Rs 1 crore in 2046 is not Rs 1 crore of today's purchasing power.
SIP investments accumulate units across many purchase dates. Each unit's holding period and tax treatment is computed independently when you redeem. For equity-oriented mutual funds (those with at least 65% domestic equity per SEBI Mutual Fund Regulations 1996):
This calculator does NOT compute your tax. Per-unit tax depends on your specific purchase dates, redemption dates, fund classification, and how the Rs 1.25 lakh annual exemption is shared with other equity LTCG. For debt-oriented funds, all gains (regardless of holding period) are added to income and taxed at slab rates per the Finance Act 2023 changes. Use the official Income Tax e-filing portal's schedule CG when you actually redeem.
Last reviewed in May 2026. SIP math (compounding formula) is mathematically standard. Tax rates and exemption thresholds verified against the Income-tax Act, 1961 as amended by the Finance (No.2) Act, 2024. Re-verify on each Union Budget (typically Feb 1) for slab or section changes.
Looking for historical SIP simulation against real fund NAV? Use Mutual Fund SIP Backtest. For income tax planning, see Income Tax Calculator. For tax-saving alternatives, compare against PPF Calculator (EEE status, 7.1% current rate) and NPS Calculator (additional Rs 50K under 80CCD(1B)).