ToolFoxStep-up SIP Calculator
Project the future value of a SIP that increases every year, and see how much faster it grows than a flat SIP.
- Future value
- ₹33,74,326
- Amount invested
- ₹19,12,491
- Estimated gains
- ₹14,61,835
How it works
A step-up (or "top-up") SIP raises your monthly instalment by a fixed percentage every year, matching a rising income. The calculator simulates it month by month: in year k, the monthly deposit is the starting amount multiplied by (1 + step-up%)^(k−1), and each month the running balance is topped up with that deposit and then grown by the monthly return, exactly like a regular SIP's annuity-due compounding. Setting the step-up to 0% reduces this to a plain SIP.
Example
Starting at ₹10,000/month with a 10% annual step-up and a 12% expected return over 10 years invests ₹10,000×12 in year one, ₹11,000×12 in year two, and so on — reaching a noticeably larger corpus than a flat ₹10,000/month SIP over the same period.
Frequently asked questions
How is this different from a regular SIP?
A regular SIP keeps the monthly amount fixed. A step-up SIP raises it every year by a chosen percentage, so your investment keeps pace with a growing salary.
What step-up percentage should I use?
A common rule of thumb is to match your expected annual salary increment, often 8–12% for salaried investors — but any percentage you can sustain works.
Does the step-up apply mid-year or only annually?
Only annually in this model — the instalment stays constant for 12 months, then jumps at the start of the next year, which is how most fund houses implement it.
Is the future value guaranteed?
No. Like any SIP projection, it assumes a constant annual return; actual mutual-fund returns vary year to year.
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