Step-Up SIP Calculator — Annual Increment SIP
Calculate how much more wealth a Step-Up SIP creates vs a flat SIP. See the power of increasing your monthly investment in line with your salary.
Step-Up SIP Details
Step-Up SIP Maturity
₹85.98 L
₹36.02 L more than a flat SIP
Total Invested
₹38.13 L
Wealth Gained
₹47.85 L
vs Regular SIP
+₹36.02 L
Step-Up Maturity
₹85.98 L
Step-Up SIP
₹85.98 L
Invested: ₹38.13 L
Regular SIP
₹49.96 L
Invested: ₹18.00 L
Step-Up SIP vs Regular SIP Growth
Sponsored
Start a Step-Up SIP Today
Set up your Step-Up SIP with top-rated mutual funds. Aligned with annual salary increments.
Powered by Paisabazaar
What is a Step-Up SIP?
A Step-Up SIP (Top-Up SIP) automatically increases your monthly SIP investment by a fixed percentage every year. The idea is simple: as your salary grows, so should your investment. Most people start a SIP with a comfortable monthly amount and forget to increase it as their income rises. Step-Up SIP automates this process — your SIP grows 10–15% per year without any manual intervention. The result is dramatically higher wealth creation. Over 20 years, a ₹10,000/month SIP with a 10% annual step-up can build more than 2× the corpus of a flat ₹10,000 SIP at the same return rate. The extra wealth comes from higher invested amounts in the later years, which have the longest time to compound.
How to Use the Step-Up SIP Calculator
- 1.Initial Monthly SIP: Enter your starting monthly investment amount.
- 2.Annual Step-Up %: Enter the percentage increase each year (10% = salary increment parity).
- 3.Expected Returns: Enter the expected annual return (12% is historical average for diversified equity funds).
- 4.Tenure: Select your investment period in years.
- 5.Compare: The calculator shows Step-Up SIP vs Regular SIP side-by-side so you can see exactly how much extra wealth the step-up creates.
Step-Up SIP Impact — Example
At 12% annual return, 20-year investment, starting ₹10,000/month:
0% (Flat)
₹99.9 L
Invested: ₹24 L
10% Step-Up
₹2.06 Cr
Invested: ₹57.3 L
15% Step-Up
₹3.43 Cr
Invested: ₹79.8 L
Step-Up SIP Formula and Calculation Method
A Step-Up SIP compounds in two dimensions: the monthly investment amount grows annually, and all investments compound continuously. The calculation requires year-by-year SIP periods to be summed:
Step-Up SIP Annual Investment
P(y) = P(1) × (1 + g)^(y−1)
Where: P(y) = Monthly SIP in year y, P(1) = Initial monthly SIP, g = Annual step-up rate (e.g. 0.10 for 10%). Year 1: P(1), Year 2: P(1)×1.1, Year 3: P(1)×1.21, and so on.
Total Corpus = Sum of Year-wise SIP Maturity Values
For each year y with monthly SIP P(y), calculate the FV of 12 monthly investments compounding at the expected return for the remaining (n−y) years. Sum all these FV values across all years. The calculator does this automatically — there is no single closed-form formula for step-up SIP.
Example (₹10,000 start · 10% step-up · 12% return · 20 years)
Year 1 SIP: ₹10,000/mo · Year 5 SIP: ₹14,641/mo · Year 10 SIP: ₹23,579/mo · Year 20 SIP: ₹61,159/mo · Total invested: ₹57.3L · Maturity: ₹2.06 crore
The step-up effect is multiplicative, not additive — a 10% step-up for 20 years doesn't double your corpus, it increases it 2× to 3× compared to a flat SIP, depending on the return rate and tenure.