5,000 rising 10% a year, 6% inflation
Start at $5,000.00 a month. Raise that amount 10% each year. Expected return 12%. Inflation 6%. Term 10 years.
Nominal value $1,687,163.13. In today’s money $942,103.08. Invested $956,245.48.
Step-up SIP calculator with inflation
The same SIP math, opened on a monthly deposit that rises once a year. The page shows the future value, then that pile in today’s money after the inflation you type.
Symbol only. Amounts are not converted.
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Future value
$1,687,163.13
120 deposits. In today’s money: $942,103.08.
- Invested
- $956,245.48
- Growth
- $730,917.66
- Today’s money
- $942,103.08
0510
Next: SWP calculatorTake a monthly amount out of the ending sum.
The deposit rises once a year. Return is compounded monthly from the start of the month. Inflation restates the ending value in today’s money.
The numbers, period by period
| Period | Invested | Growth | Value |
|---|---|---|---|
| Year 1 | $60,000.00 | $4,046.64 | $64,046.64 |
| Year 2 | $126,000.00 | $16,620.66 | $142,620.66 |
| Year 3 | $198,600.00 | $39,604.97 | $238,204.97 |
| Year 4 | $278,460.00 | $75,201.40 | $353,661.40 |
| Year 5 | $366,306.00 | $125,979.20 | $492,285.20 |
| Year 6 | $462,936.60 | $194,930.44 | $657,867.04 |
| Year 7 | $569,230.26 | $285,533.32 | $854,763.58 |
| Year 8 | $686,153.29 | $401,824.49 | $1,087,977.78 |
| Year 9 | $814,768.61 | $548,481.64 | $1,363,250.25 |
| Year 10 | $956,245.48 | $730,917.66 | $1,687,163.13 |
How this is calculated
- Step 1
Start amount
The first year’s monthly deposit.
- Step 2
Once a year
The deposit rises by the step-up percent. Months inside a year stay flat.
- Step 3
Today’s money
Inflation restates the ending value. It does not change the balance.
Rising beginning-of-month annuity, then a price deflator
Each month: balance = (balance + deposit for that year) × (1 + i). Real value = balance ÷ (1 + inflation)^years
| deposit | Starting monthly amount, multiplied by (1 + step-up) once per completed year. |
|---|---|
| i | Monthly rate: expected annual return divided by 12. |
| inflation | Annual rise in prices, used only to restate the final balance in today’s money. |
This is the SIP calculator with the schedule fixed at monthly and the step-up already in view. Weekly, daily, and yearly deposits stay on that page.
Year one uses the amount you type. Year two uses that amount plus the step-up, and so on. The rise is not applied every month.
A 0% step-up and 0% inflation matches the SIP calculator with both of those set to zero. Use that pair when you want to check the two pages against each other.
Inflation does not change the nominal balance. It answers a different question: what would this ending pile buy at today’s prices, if prices rose at the rate you typed.
To take a fixed amount out of a lump sum later, continue to the SWP calculator.
Worked examples
Loading an example fills the tool and scrolls you back to the result. Money examples stay in US dollars on the page. The symbol you picked changes; the numbers do not convert.
The same 5,000, with no step-up and no inflation
Start at $5,000.00 a month. Raise that amount 0% each year. Expected return 12%. Inflation 0%. Term 10 years.
Nominal value $1,161,695.38. In today’s money $1,161,695.38. Invested $600,000.00.
10,000 rising 5% a year for 15 years
Start at $10,000.00 a month. Raise that amount 5% each year. Expected return 10%. Inflation 5%. Term 15 years.
Nominal value $5,499,930.79. In today’s money $2,645,560.75. Invested $2,589,427.63.
Embed this calculator
Paste this on a page you control. The frame shows the tool only. The formula stays on this page, and the frame links back here.
<iframe src="/embed/step-up-sip" title="Step-up SIP calculator" width="100%" height="720" style="border:0;max-width:42rem" loading="lazy"></iframe>Questions
When does the monthly amount increase?
On each anniversary, not every month. A 10% step-up on 5,000 means year one is 5,000 a month and year two is 5,500 a month.
Is the inflation rate subtracted from the return?
No. The corpus is grown at the return you typed. Inflation is applied once, at the end, so you can read the result in today’s money. A 12% return and 6% inflation is not shown as a 6% return.
Does this include tax or a fund expense ratio?
No. Lower the expected return yourself if you want a rough net-of-fee figure. The page does not know which fund you hold.
Why is the real value lower than the future value?
Prices rose. The nominal figure is the money in the account. The real figure is that money divided by the inflation you typed, compounded for the same number of years.