Last reviewed: 4 September 2026. Worked numbers use the same engines as the linked calculators. Not advice.
The SIP calculator compounds a monthly contribution at an assumed annual return. Markets do not deliver a smooth 12%. Treat the output as a what-if, then change the rate.
Monthly i = annual/12/100. FV = M × [((1+i)^n − 1) / i] × (1+i). Step-up raises M each year. Open SIP and step-up notes.
A lumpsum invested on day one spends more time in the market in this math. Timing risk is real. Compare on SIP vs lumpsum without treating either line as a past CAGR.
Educational estimates only. Confirm with your bank, AMC or a registered advisor. Disclaimer · Methodology.