How to use the step-up SIP calculator
- Enter your starting monthly SIP.
- Choose the expected yearly return and how many years you will invest.
- Set the yearly step-up percentage.
- Compare the result with a flat SIP of the same starting amount.
Step-up vs flat SIP
₹10,000 a month to start, 12% a year, for 20 years:
| Yearly step-up | Total invested | Value after 20 years |
|---|---|---|
| Flat SIP | ₹24,00,000 | ₹99,91,479 |
| 5% a year | ₹39,67,914 | ₹1,37,37,623 |
| 10% a year | ₹68,73,000 | ₹1,98,88,715 |
| 15% a year | ₹1,22,93,230 | ₹3,02,55,942 |
| 20% a year | ₹2,24,02,560 | ₹4,80,42,739 |
Why stepping up works
Salaries usually rise every year but SIPs often stay the same, so they shrink as a share of income. Stepping up keeps your savings rate steady. Pair it with a salary calculator check after each raise.
Frequently asked questions
What is a step-up SIP?
A step-up (or top-up) SIP automatically raises your monthly instalment by a fixed percentage or amount every year, usually in line with your salary increments.
How is a step-up SIP calculated?
Each year's instalments are invested monthly and compound until the end date, just like a normal SIP, but the monthly amount rises by the step-up rate at the start of every year. The calculator adds up every instalment's growth month by month.
What step-up percentage should I choose?
A step-up close to your expected salary growth, often 5–10% a year, is sustainable for most people. Even 5% makes a large difference over 20 years.
Can I set up a step-up SIP with any mutual fund?
Most fund houses and investment platforms offer a top-up or step-up option when you register a SIP. You can also raise your SIP manually each year.
Is step-up SIP better than a higher flat SIP?
A higher flat SIP from day one earns more, because larger amounts compound for longer. A step-up SIP is a practical way to reach a similar result when you cannot afford the higher amount today.