How this calculator works
CalcuMint simulates monthly cash flows deterministically, applies the assumed monthly return and increases the contribution by the selected annual step-up after each 12-month block.
Formula
balance[m] = (balance[m-1] + contribution[m]) × (1+r) with annual contribution step-upDeterministic monthly cash-flow simulation with annual contribution increases; timing controls whether each contribution is invested before or after monthly growth.
Worked example
$10,000 initial monthly contribution, 10% annual step-up and 10% estimated return for 10 years is a verified test case used by the calculation engine.
Assumptions and limitations
- Return and annual step-up rates remain constant.
- The contribution changes once after each completed 12-month period.
- Taxes, fees and market volatility are excluded.
Methodology & sources
This calculator uses deterministic, versioned calculation logic. The formula and verified examples above are part of the calculation definition used by CalcuMint.
Frequently asked questions
Can I solve the starting SIP for a target corpus?
Yes. The reverse solver determines the initial monthly contribution required under the selected return, annual step-up and term assumptions.
Does the annual step-up predict future income or returns?
No. It is a scenario assumption that increases the modeled contribution after each completed year.