Step-Up SIP Wealth & Purchasing Power Calculator
Multi-year compounding, progressive annual step-ups, retail inflation discounting, and illustrative equity capital gains tax.
Across 120 monthly contributions
Nominal value at 12% CAGR
After full illustrative redemption under Sec 112A
Discounted at 5.5% annual inflation (Real return: -0.21%)
Your investment of ₹19,12,488 could grow to ₹33,74,324. After estimated equity capital gains tax, you may retain ₹31,99,047.
However, inflation reduces purchasing power over 10 years. In terms of what goods and services cost today, that corpus is equivalent to approximately ₹18,72,820.
Step-Up Comparison: The Cost of Inaction
10y @ 12%| Scenario | Total Invested | Gross Corpus | Post-Tax | In Today's ₹ |
|---|---|---|---|---|
| Flat SIP (0% Step-up) | ₹12.00 Lakh | ₹23.23 Lakh | ₹21.93 Lakh | ₹12.84 Lakh |
| 1% Annual Step-up | ₹12.55 Lakh | ₹24.08 Lakh | ₹22.73 Lakh | ₹13.31 Lakh |
| 5% Annual Step-up | ₹15.09 Lakh | ₹27.87 Lakh | ₹26.36 Lakh | ₹15.43 Lakh |
| 10% Annual Step-up | ₹19.12 Lakh | ₹33.74 Lakh | ₹31.99 Lakh | ₹18.73 Lakh |
*Notice how a 10% annual step-up nearly doubles the real purchasing power compared to a flat SIP.
Statutory Note: In accordance with Finance (No. 2) Act 2024, each SIP instalment represents an independent acquisition lot. All units held for more than 12 months qualify for Section 112A LTCG (12.5% after ₹1.25L exemption); units from the final 12 months are taxed under Section 111A STCG (20%). This assumes a lump-sum complete exit at tenure completion.
Year-by-Year Corpus Progression
| Year | Monthly ₹ | Cumulative Invested | Gross Corpus | Purchasing Power |
|---|---|---|---|---|
| Yr 1 | ₹10,000 | ₹1,20,000 | ₹1,28,093 | ₹1,21,415 |
| Yr 2 | ₹11,000 | ₹2,52,000 | ₹2,85,241 | ₹2,56,276 |
| Yr 3 | ₹12,100 | ₹3,97,200 | ₹4,76,410 | ₹4,05,717 |
| Yr 4 | ₹13,310 | ₹5,56,920 | ₹7,07,323 | ₹5,70,963 |
| Yr 5 | ₹14,641 | ₹7,32,612 | ₹9,84,570 | ₹7,53,329 |
| Yr 6 | ₹16,105 | ₹9,25,872 | ₹13,15,733 | ₹9,54,230 |
| Yr 7 | ₹17,716 | ₹11,38,464 | ₹17,09,531 | ₹11,75,194 |
| Yr 8 | ₹19,487 | ₹13,72,308 | ₹21,75,957 | ₹14,17,851 |
| Yr 9 | ₹21,436 | ₹16,29,540 | ₹27,26,504 | ₹16,83,969 |
| Yr 10 | ₹23,579 | ₹19,12,488 | ₹33,74,324 | ₹19,75,432 |
This tool provides empirical financial modeling for educational public awareness. Mutual fund investments are subject to market risks; past CAGR is not a guarantee of future returns. Returns are simulated using constant annual compounding and do not account for entry/exit loads or expense ratios. Capital gains tax treatment reflects prevailing statutes under Finance (No. 2) Act 2024 and does not constitute formal chartered accountancy advice.