SIP Increment Percentage Calculator
Results
Increment Percentage:
0%
Amount Increased:
$0
Current SIP:
$0
New SIP:
$0
Annual Increase:
$0
📊 SIP Increment Calculator – How It Works
🔹 What is SIP Increment?
A SIP (Systematic Investment Plan) increment refers to increasing your regular investment amount in mutual funds. This helps combat inflation and grow your investments faster through the power of compounding.
🔹 How is SIP Increment Calculated?
The formula to calculate SIP increment percentage is:
Increment % = [(New SIP – Current SIP) / Current SIP] × 100
Example: If your current SIP is $500 and you increase to $600:
[(600 - 500) / 500] × 100 = 20%
🔹 Why Increase Your SIP?
- ✅ Beat Inflation: Maintain purchasing power of your investments
- ✅ Compounding Benefits: Larger investments grow exponentially
- ✅ Financial Discipline: Automatically save more as income grows
🔹 Recommended SIP Increase Strategies
| Strategy | Description | Recommended For |
|---|---|---|
| Fixed Percentage | Increase by 10-15% annually | Salaried individuals |
| Salary-Linked | Increase with salary hikes | Those with regular increments |
| Goal-Based | Increase when goals change | Specific financial targets |
🔹 Benefits of SIP Increment
- 📌 Rupee Cost Averaging: Buy more units when markets are low
- 📌 Financial Security: Build larger corpus for future needs
- 📌 Tax Efficiency: Maximize tax-saving investments
🔹 Frequently Asked Questions (FAQ)
Q: How often should I increase my SIP?
Most financial advisors recommend increasing your SIP:
- Annually (10-15% increase)
- With every salary hike
- When you have additional savings capacity
Q: Does increasing SIP affect returns?
Yes, increasing your SIP can significantly boost returns due to:
- Larger principal amount compounding over time
- More units purchased during market dips
- Faster achievement of financial goals
Q: What's better - new SIP or increasing existing SIP?
Increasing existing SIP is generally better because:
- Simplifies portfolio management
- Maintains continuity in investments
- Often has lower paperwork/charges