Step Up SIP Calculator: Can Starting With ₹20,000 Per Month Create ₹1 Crore in 10 Years?

A Step Up SIP is a simple way to understand how regular investing, yearly increases and compounding can work together over time.  

In this case, the SIP starts at ₹20,000 per month and increases by 20% every year. This means the monthly investment grows gradually over the 10-year period. The idea is to align investment contributions with a potential rise in income over time. 

Can a Step Up SIP Help Reach ₹1 Crore? 

Yes, based on the given assumptions, a Step Up SIP can reach a value of around one crore over 10 years. 

The calculation is based on 3 key inputs.  

• The SIP starts at ₹20,000 per month.
• The SIP amount increases by 20% annually.
• The expected annualised return is assumed at 12%. 

Using these inputs, the estimated value after 10 years comes to ₹1,01,22,609. This means the investment value crosses the one crore mark under the assumed return scenario. 

The Maths Behind the ₹1 Crore SIP Calculation 

The total invested amount over the 10-year period is ₹62,30,052. This is the actual amount contributed through the SIP and the yearly step up. 

The estimated returns are ₹38,92,557. These returns are generated because the invested amount has time to compound over the investment period. 

Together, the invested amount and estimated returns bring the total value to ₹1,01,22,609. 

What Is a Step Up SIP? 

A Step Up SIP is a systematic investment approach where the monthly investment amount is increased every year. Instead of keeping the SIP amount fixed for the entire period, the investor raises the contribution at a chosen rate. 

Read More: Step Up Calculator: How A ₹25,000 SIP Can Build A ₹10 Crore Corpus In 30 Years? 

Conclusion 

A Step Up SIP starting with ₹20,000 per month and increasing by 20% every year can potentially cross one crore in 10 years, assuming a 12% annualised return. 

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Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully. 

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