Step Up SIP Calculator
Raise your SIP as your income grows. See how increasing your SIP by a fixed percentage each year accelerates the final corpus.
About the Step Up SIP Calculator
A step-up SIP (also called a top-up SIP) raises your monthly instalment by a set percentage every year, usually in line with your salary. The effect compounds twice over: each year you invest more, and every extra rupee then compounds for the remaining tenure. Over a long horizon, a modest annual increase often outgrows a much larger flat SIP.
How a step-up SIP is computed
Corpus = SUM over each year of [ SIP_year x annuity factor for months remaining ]
- SIP_year
- Monthly amount in that year, grown by the step-up rate
- annuity factor
- Standard SIP growth factor for the months still to run
There is no single closed-form expression once the instalment changes annually, so the calculator compounds the schedule year by year.
Using this calculator
- Enter the monthly SIP you can start with today.
- Set the percentage you expect to raise it by each year.
- Add the expected return and total tenure.
- Compare the result against a flat SIP of the same starting amount.
Step Up SIP Calculator FAQs
What is a step-up SIP?
A step-up SIP automatically increases your monthly instalment by a fixed percentage or amount each year. It is designed to keep your investing in step with salary growth, so contributions rise in real terms instead of being eroded by inflation.
How much should I step up each year?
Matching your expected annual increment is the common rule, which puts most people between 5% and 10%. The key test is whether the higher instalment stays affordable in a year when your income does not rise as planned.
Is a step-up SIP better than simply starting with a bigger SIP?
A larger flat SIP compounds more in the early years, which matters most. A step-up SIP wins when you cannot afford the larger amount today. The best plan is usually the largest instalment you can sustain, stepped up over time.
Can I set up a step-up SIP automatically?
Most fund houses and platforms support a top-up instruction that raises the mandate each year without any action from you. Where it is unavailable, you can achieve the same effect by starting an additional SIP annually.
What if I cannot afford the increase one year?
You can normally pause or reduce the step-up without cancelling the SIP itself. Skipping a single increase delays the corpus slightly but does not undo the compounding already accumulated on earlier instalments.
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Important: this calculator provides general information and arithmetic only. It is not personal financial, tax or investment advice. Projected returns are illustrations based on the rate you enter, not guarantees, and market-linked investments can fall in value. Verify current tax rates and scheme terms before acting, and consult a qualified adviser where the decision matters.