Step-Up SIP Calculator
Calculate how much your SIP grows when you increase the monthly contribution every year. A small annual raise in your SIP can make a large difference over time.
- Total invested
- $956,245
- Est. returns
- $730,918
- Final monthly SIP
- $11,790
What is a step-up SIP?
A step-up SIP (also called a top-up SIP) is a Systematic Investment Plan where you increase your monthly contribution by a fixed percentage every year. Instead of investing the same amount for the entire horizon, you raise it annually — typically in line with a salary hike or a savings target.
The effect is compounding on two levels: your money earns returns on returns, and your contributions themselves grow each year. Over a long horizon this combination produces a materially larger corpus than a flat SIP of the same starting amount.
How the step-up SIP calculator works
You provide four inputs: your starting monthly SIP, the annual step-up percentage, an expected annual return, and the investment period.
- Starting monthly SIP — what you invest in the first year.
- Annual step-up — how much you raise the SIP each year, as a percentage. A 10% step-up on a ₹5,000 SIP gives ₹5,500 in year two, ₹6,050 in year three, and so on.
- Expected return — the assumed annual return. Use a realistic figure: 10–12% for diversified equity funds over long horizons.
- Investment period — how many years you stay invested.
The calculator works out the future value of every monthly contribution individually, compounds each one for the remaining months, and sums the results. It also shows the total amount you invested and the estimated returns earned on top.
The step-up SIP formula
When the step-up is 0%, this collapses to the standard SIP annuity-due formula. The total invested is the sum of all monthly contributions across all years.
Step-up vs flat SIP — a comparison
Starting SIP of ₹5,000/month, 12% expected return, 10 years. Step-up applied from year 2 onward.
| Scenario | Total invested | Est. maturity value | Extra corpus |
|---|---|---|---|
| Flat SIP (no step-up) | ₹6,00,000 | ₹11,61,695 | — |
| 5% annual step-up | ₹7,54,660 | ₹13,55,000 | +₹1,93,305 |
| 10% annual step-up | ₹9,56,245 | ₹16,87,163 | +₹5,25,468 |
A 10% annual step-up on a ₹5,000 SIP adds over ₹5 lakh to the final corpus compared with a flat SIP — while the extra monthly contributions account for only ₹3.56 lakh of that gap. The rest comes from returns on the higher contributions.
How to choose your step-up percentage
- Match your salary growth. If you expect a 10–12% raise each year, a 10% SIP step-up keeps your investment-to-income ratio constant.
- Start conservative. A 5–7% step-up is sustainable for most investors. You can always increase it later.
- Link it to a milestone. Many investors step up their SIP the month they receive their annual bonus or appraisal increment.
- Compare with a flat higher SIP. Sometimes simply starting with a larger flat SIP is better than stepping up from a small base.