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Step-Up SIP Calculator

Salaries rarely stay flat, and a step-up SIP lets contributions grow with them instead of freezing the same instalment for a decade. This calculator projects a monthly plan where each new year starts with a higher instalment, so a modest yearly increase compounds into a corpus a flat SIP of the opening amount would never reach.

Enter values

The instalment you begin with this year

Raise the instalment by this % after every 12 months

Long-term equity funds have historically returned 10–14%

Results update as you type.

Results

Future value
₹33,74,326.26
Amount invested
₹19,12,490.95
Wealth gained
₹14,61,835.31
Monthly SIP in the final year
₹23,579.48
08.4L16.9L25.3L33.7LY1Y3Y5Y7Y9
  • Amount invested
  • Market value

How is the Step-Up SIP calculated?

Enter the monthly amount you can start with, the percentage by which you will raise it every year, the expected return and the term. Each instalment joins the corpus at the start of its month, the balance earns the monthly rate, and from the thirteenth payment onward the amount steps up by your chosen percentage. The results show future value, total invested, wealth gained and the final-year instalment alongside a chart of contributions against market value.

Formula

Each month: balance = (balance + P × (1 + s)^k) × (1 + i)

where P = starting instalment, s = step-up ÷ 100, i = expected annual return ÷ 12 ÷ 100 and k = full years completed so far. The loop runs month by month — no closed form — which makes the twelve-month step cycle explicit and testable.

Example

Start with ₹10,000 a month, raise it 10% every year and expect 12% returns over ten years. Your instalment becomes ₹11,000 in year two and ₹23,579 in year ten, so the plan invests ₹19,12,491 instead of ₹12,00,000. The corpus reaches about ₹33,74,326 with roughly ₹14,61,835 of wealth gained — more than ₹10 lakh above what a flat ₹10,000 SIP would have produced.

Things to remember

A step-up SIP converts routine salary hikes into corpus without requiring any large one-time commitment, making it well suited to long horizons and rising income. Start with an instalment you can sustain even in a lean year, and let the schedule confirm that each yearly step still lands within your budget.

Frequently Asked Questions

What exactly is a step-up SIP?

It is a systematic investment plan whose monthly instalment grows by a fixed percentage after every twelve payments, so the amount you invest rises with your salary instead of standing still. A ₹10,000 plan stepped up by 10% invests ₹19,12,491 over ten years rather than ₹12,00,000.

How much should I increase my SIP every year?

Match the increase to your salary growth: 10% a year is the usual rule of thumb and adds more than ₹10 lakh to a ₹10,000 monthly plan over ten years at 12% expected returns. If that feels tight, begin at 6–8% and raise the step-up whenever a bonus arrives.

Can I pause or skip a step-up SIP?

Yes — the step-up is a scheduled increase rather than a contract, so you can pause, skip or resize instalments whenever life demands it. This calculator assumes every payment arrives on time, so any missed year simply leaves the final corpus below the figure projected here.

Step-up SIP or a regular SIP with occasional top-ups?

Both reach the same destination when the amounts match. The step-up version is easier to automate because the increase lives inside the fund mandate, while an occasional lumpsum top-up concentrates the extra money on one date and therefore on a single market level.

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