Increasing Contribution Calculator
Plan investments with annual increases. Account for salary growth and inflation by increasing SIP/contributions yearly.
Increasing Contribution Calculator
Result
How it works
Formula Used
FV = P₁ × [((1+g)(1+r)^n - 1) / (r-g)] P = initial contribution, g = growth rate, r = return rate, n = years
Smart Tips
- Realistic: most salaries grow 8-12% annually
- Boosts corpus significantly over long periods
- Perfect for career-long investment planning
Best Used For
Plan investments with yearly bonus/raise allocation
FAQs
How much should I increase my SIP every year?
Match your salary growth or inflation, whichever is higher. Average Indian salary growth is 8-10%. If salary grows 10%, increase SIP by 10%. This ensures investments match your growing income capacity.
Does increasing contributions really make a big difference?
Yes, huge. Starting with ₹50k → ₹60k (10% annual) over 20 years at 12% return gives ₹1.8Cr vs flat ₹50k giving ₹1.5Cr. Difference: ₹30 lakhs! Increasing annually boosts wealth significantly.
What if I can't increase contributions every year?
Increase when you can—bonus, salary hike, tax refund, etc. Even if you increase only some years, the principle applies. Better to increase sometimes than never. Consistency matters more than frequency.
Should I increase SIP or lump sum the extra amount?
Increase SIP for consistency and rupee-cost averaging benefit. If you lumpsum yearly increase, you face timing risk. SIP approach is more disciplined and proven to work better for average investors.
Embed Tool
Want to add this Increasing Contribution Calculator to your own website? It's free and easy!