Step-up SIP Calculator
See how much more you build when your SIP rises every year with your income — maturity value, total invested and the extra corpus the step-up creates versus a flat SIP.
Inputs
Report details (optional — appears on the PDF report)
Results
Formula
- Pk = monthly SIP in year k, stepped up each year
- i = monthly return · mk = months remaining after year k
- Each year's 12 instalments are compounded, then carried forward to maturity
How It Works
The calculation runs month by month. Twelve instalments are made at the current SIP amount, then the amount steps up — by a percentage or a fixed sum — and the next year begins. Everything already invested keeps compounding throughout.
Because later contributions are larger but compound for less time, and earlier ones are smaller but compound longer, the step-up benefit builds gradually and then accelerates.
Worked Example
Given: Start ₹5,000/month, step up 10% each year, 12% p.a., 15 years
Year 1 SIP ₹5,000 → Year 5 ₹7,320 → Year 15 ₹18,974/month
Total invested ≈ ₹19,07,000 · Maturity ≈ ₹42,60,000
A flat ₹5,000 SIP over the same 15 years reaches only ≈ ₹25,23,000 — the step-up adds roughly ₹17.4 lakh.
Engineering Notes
- The step-up is applied once at the start of each new year, the standard convention for step-up mandates.
- Assumes a constant expected return; real returns vary year to year.
- Percentage step-ups compound — 10% a year means the SIP nearly quadruples in 15 years.
- Expense ratio, exit load and capital gains tax are not deducted.
FAQ
What step-up should I choose?
Match it roughly to your expected annual salary increase so the SIP stays affordable.
Percentage or fixed amount?
Percentage keeps pace with income growth; a fixed amount is easier to budget for.
Do fund houses support this?
Most offer a step-up or top-up SIP mandate that raises the amount automatically each year.
Related Calculators
This calculator uses established formulas and standard calculation methods to provide reliable results for planning, estimation and reference.