Step-up SIP Calculator
Project corpus when you raise your SIP by a fixed percentage every year.
Step-up SIP calculator
A step-up SIP raises your monthly mutual fund instalment by a fixed percentage every year, usually after each salary hike. This calculator projects corpus when your SIP grows with income while returns compound on a rising contribution base.
How to use this calculator
Enter the SIP amount you can invest today. That is year-one monthly contribution before any increase.
Set annual step-up as the percentage you plan to add each year. Ten percent step-up on a ₹5,000 SIP means ₹5,500 per month in year two, ₹6,050 in year three, and so on. Pick a rate you can sustain through slow salary years, not just your best bonus year.
Use expected return as a planning band. Equity mutual funds over ten-plus years are often modelled at 10% to 12%, but run 8% if the goal is within five years.
Compare the step-up corpus with the flat SIP line in the results panel. The gap shows how much extra wealth comes purely from increasing contributions, not from market timing.
Step-up SIPs suit salaried investors whose income rises steadily. If income is irregular, a flat SIP plus occasional top-ups may be easier to manage than a rigid annual increase mandate.
Step-up SIP simulation
Each month: 1. Corpus = previous corpus × (1 + monthly return) + current monthly SIP 2. After every 12 months, monthly SIP = previous SIP × (1 + step-up% / 100) Monthly return uses (1 + annual return)^(1/12) − 1. Example: ₹5,000 start, 10% annual step-up, 12% return, 15 years. Total invested exceeds a flat ₹5,000 SIP because contributions rise. Corpus often beats flat SIP by a wide margin even at the same starting amount.
Frequently Asked Questions
Step-up SIP vs regular SIP?
Regular SIP keeps the same monthly amount. Step-up SIP increases the amount on a schedule, usually yearly, to match rising income.
What step-up rate is realistic?
Many salaried users model 5% to 10% annual step-up. Higher rates are possible early in career but harder to maintain in flat salary years.
Can AMCs set step-up SIP automatically?
Yes. Most fund houses and platforms let you register an annual increase percentage when starting the SIP mandate.
Does step-up remove market risk?
No. You still buy units at prevailing NAV. Step-up only increases how much you invest over time.
Step-up vs investing a bonus as lumpsum?
Bonuses are irregular. Step-up builds discipline into salary growth. Many investors combine both: step-up SIP plus annual bonus lumpsum.
What return should I assume?
Use 10% to 12% for long equity goals and 7% to 8% for conservative or short horizons. Stress-test at lower rates before committing to a goal amount.
Is step-up better than starting a higher flat SIP?
Starting higher today wins if you can afford it from day one. Step-up helps when you cannot spare a large SIP yet but expect income to grow.
Compare with lumpsum calculator?
Lumpsum models one-time investment. Step-up SIP models recurring deposits that grow. Use both for bonus vs salary plans.
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