SIP Step-Up Calculator
Step-up SIP means increasing your monthly SIP amount by a fixed percentage each year — ideal for salaried investors who get annual raises.
About this calculator
A flat SIP stays the same for decades while your income and costs rise. A step-up SIP increases each year by a percentage you choose. This calculator shows the corpus both ways side by side, so you can see how much a modest yearly increase adds.
It reports the total invested, the returns, the step-up corpus and the extra you gain over a flat SIP. A comparison table lays out the flat and step-up results for invested amount, corpus and gain.
How to use it
- Enter your starting Monthly SIP Amount.
- Enter the Annual Step-Up Rate.
- Enter the Expected Annual Return and the Tenure.
- Read the step-up corpus and the comparison table.
How step-up works
The instalment in year k is SIP × (1 + step)k−1. Each month's instalment compounds at the monthly return until the end of the tenure, and the tool sums these values. The flat SIP uses the same formula with a step-up of 0%.
Worked example
₹10,000 a month, 10% step-up, 12% return, 20 years
| Flat SIP corpus | ₹99,91,479 |
| Flat SIP invested | ₹24,00,000 |
| Step-up corpus | ₹1,98,88,715 |
| Step-up invested | ₹68,73,000 |
| Extra corpus | ₹98,97,236 |
The step-up plan invests about 2.9 times as much in total but ends with nearly double the corpus, because later, larger instalments have less time to compound.
Tips and common mistakes
- Tie the step-up to your raises. A 10% step-up is manageable if your pay grows 8 to 10%.
- Start with a small SIP and a step-up rather than waiting to afford a large one.
- Early instalments matter most. Starting five years earlier beats a higher step-up later.
- Check the final-year SIP. Make sure it is something you can sustain.
- Use a realistic return. 12% is optimistic for a long period.
Frequently asked questions
What is a step-up SIP?
It is a SIP whose monthly amount rises by a fixed percentage every year.
How much extra does step-up add?
In the example, a 10% step-up nearly doubles the corpus. The effect grows with tenure.
Can I set up a step-up with my fund house?
Many AMCs and platforms offer a top-up or step-up facility with the SIP mandate.
What step-up percentage is sensible?
5 to 10% is typical, in line with salary growth.
Does the calculator assume monthly or yearly increases?
The SIP rises once a year, at the start of each year.
Is the return guaranteed?
No. It is an assumption.