About the Step Up SIP Calculator
A step-up SIP raises your monthly investment by a fixed percentage every year, usually in line with salary hikes. Raising a ₹10,000 SIP by 10% a year for 15 years at 12% grows to about ₹86,83,849, compared with ₹50,45,760 if the SIP stays flat.
How it is calculated
Value after each month = (previous value + this month's SIP) × (1 + i)
- i is the monthly rate: the expected annual return ÷ 12 ÷ 100.
- The monthly SIP stays the same for 12 months, then rises by the step-up percentage s: SIP in year k = starting SIP × (1 + s)^(k − 1).
- Each instalment is invested at the start of the month.
Worked example
Inputs: ₹10,000 a month, 10% yearly step-up, 12% expected return, 15 years.
Result: ₹38,12,698 invested, ₹48,71,152 estimated returns, ₹86,83,849 total value. The SIP reaches ₹37,975 a month in year 15.
Rules and assumptions
- Most fund houses let you set a yearly top-up, as a fixed amount or a percentage, when you register the SIP.
- Returns are an assumption, not a guarantee.
Frequently asked questions
What is a step-up SIP?
A SIP whose monthly amount rises automatically every year, by a fixed percentage or a fixed rupee amount. It is also called a top-up SIP.
How much should I step up my SIP each year?
A common rule is to match your expected salary increase, often 5–10% a year. Even a 5% step-up adds a large amount over 15 to 20 years.
Is a step-up SIP better than a regular SIP?
For the same starting amount it builds a bigger corpus, because you invest more each year. It also keeps your savings rate steady as your income grows.
Can I stop or change the step-up later?
Yes. You can usually pause or change the top-up, or start a fresh SIP, through your fund house or investment platform.