Investing in mutual funds through SIP is a great way to enjoy the benefit of compounding and generate a large corpus over time. There are different types of SIP investments available, such as Step Up SIP, Flexible SIP, Perpetual SIP, and Trigger SIP, which lets you invest a specific amount at regular intervals (monthly, quarterly, and yearly). When you opt for Step Up SIPs, you can increase your investments periodically and increase the chances of building wealth even more. While the idea seems simpler to execute, the calculations for the same seem tedious on paper. A Step-up SIP calculator here eases the task and offers precise numbers with few taps and clicks.

Step-up SIP calculators are available online to help investors perform rapid calculations related to step-up SIP and get valuable data to plan their investments.

Here’s how you can use a Step up SIP calculator

Following are the steps mentioned for using the Step up SIP calculator from Glide invest. Just follow these quick steps, and you will be made available with results in no time.

• Visit the Glide Invest website or download the app, and under section tools, select financial calculators, then check Step up SIP calculator and click or tap on it.
• Once redirected to the step-up calculator, select the monthly investment amount you would like to pay as a monthly SIP installment. You can select an amount up to Rs. 2,00,000.
• Now select the investment period you want to or should stay invested in mutual funds so you can realize the expected returns. You can select the timeframe anywhere between 1-30 years.
• Further, enter the step-up percentage on your SIP based on your current financial situation.
• Finally, select the expected rate of return the find scheme is offering.

Once you select all the mentioned fields, you will receive results in both numerical and graphical representations that will indicate the following.

• An estimation of the total amount you will receive at the end of the tenure.
• Total investment amount you will need to reach your financial goals.
• Net return you will get from your step-up SIP installments.

Based on the data from the Step-up SIP calculator, you can form meaningful decisions such as,

• Plan your investment and achieve your financial goals
• Identify the Top-up or Step up SIP you would need in the future
• Understand how the capital will rise from the start of investing to the final date.
• Identify your final returns while you step up your investments periodically.
• Identify if a certain SIP is appropriate for investment or not.

You can tweak the combinations to compare the SIPs, select the best option in line with your financial goals, and plan your investments systematically. However, remember that Step up SIP calculators don’t consider certain factors such as expense ratio or exit load for calculation. Hence, results vary from the actual ones. Hence the results from the Step up SIP calculator should be considered for reference purposes.

Importance of Step-up SIP calculator

Many times it happens when the investors begin their investment journey and don’t have massive amounts of money to invest in mutual funds through SIP, especially when they are at the start of their career or facing a financial crunch for the time being. In such situations, they invest through SIPs with whatever money they have. There are other cases too, where investors simply want to gain experience with mutual funds to see if this mode of investment works for them or not and hence keep their investment amount to a minimum. But as time passes and their income increases or they start to get better returns, they can increase their SIPs and opt for step-up SIPs to realize some of their financial goals. But, for such investments, you need proper planning and consideration of the time frame and the amount you would need during that time frame so you can achieve your goals timely. When your investments aren’t planned around such factors, you can run out of money before seeing your goals accomplished. A step-up SIP calculator here saves you from such situations.

With a step-up SIP calculator, you can experiment with various variable combinations and get an idea about how much you will need to increase your monthly SIP each year to reach your goals. It can be 5%, 10%, or any other, depending on your current financial situation and initial monthly SIP.

Step up SIP calculator fact check: 

• It helps you in investment planning. You have all the data in hand before you even invest. Accordingly, you can prepare the finances for the investment.  
• Most of the Step up SIP calculators are free. You can simply access this tool online on your smartphone or computer.
• There is no limit to the usage of the calculator. You can reach it many times until you achieve the appropriate investment amount.
• These calculators are super quick and provide you results within a matter of seconds.

Conclusion

Investing in mutual funds has never been easier than it’s now. And with the introduction of SIP, there is an added advantage of the flexibility that investors enjoy for investment planning. You can also easily start your SIP and step it up as per your need by using a Step-up SIP calculator to gather more wealth into your account.