Step-Up SIP Calculator
Calculate returns with annual increase in SIP amount — ideal for investors who increase investment yearly.
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Step-Up SIP Details
Investment Growth
Corpus growth with annual step-up
A Step-Up SIP lets you increase your investment amount every year, typically by 10%, aligning with your salary growth. This strategy can nearly double your final corpus compared to a fixed SIP. If you can afford to increase your SIP by 10% each year, the compounding effect on progressively higher amounts creates substantial wealth.
Step-Up SIP vs Fixed SIP — 20 Year Comparison
| Initial SIP | Fixed SIP (20yr) | Step-Up 10% (20yr) | Extra Returns |
|---|---|---|---|
| ₹5,000 | ₹49.5L | ₹85.0L | +72% |
| ₹10,000 | ₹99.0L | ₹1.70Cr | +72% |
| ₹25,000 | ₹2.47Cr | ₹4.25Cr | +72% |
*Assuming 12% annual returns. Step-Up SIP increases investment by 10% every year.
Step-Up SIP Strategy Tips
Match Step-Up to Your Salary Hike
If you expect 10% annual increments, set your step-up to 10%. This way the increased SIP comes from your raise without affecting your lifestyle.
Start Small, Increase Aggressively
You can start with ₹2,000/month with a 20% step-up. In 5 years, you will be investing ₹4,976/month — still very manageable.
Use Bonus and Appraisal Days
Schedule your step-up to coincide with your annual appraisal month. The increased SIP goes out before you get used to the extra money.
Combine Step-Up with Goal-Based Planning
Calculate the target corpus for your goal (retirement, child education) and use the calculator to find the right initial SIP and step-up % to hit it.
How to Calculate Step-Up SIP Returns
In plain words
A Step-Up SIP allows you to increase your investment amount annually by a fixed percentage. This aligns with growing income and accelerates wealth creation. Each year, the new higher SIP amount earns returns for its remaining tenure, compounding the growth effect significantly.
Step-Up SIP uses a growing annuity formula:
FV = Σ [P × (1 + g)^(y-1) × ((1 + r)^(n - m(y-1)) - 1) / r × (1 + r)]
Where:
P = Initial Monthly Investment
g = Annual Step-Up Rate
r = Monthly Rate of Return
n = Total Months
y = Year Number
m = Months in a year (12)A quick example
Let us calculate step-up SIP returns with annual increase:
Step by step
- 1.Year 1: ₹5,000/month invested for 20 years
- 2.Year 2: ₹5,500/month (10% increase) invested for 19 years
- 3.Year 3: ₹6,050/month invested for 18 years
- 4.And so on — each year the amount increases by 10%
- 5.Year 20: ₹30,578/month invested for the final year
So the answer is: Total Invested ≈ ₹22,00,000 | Maturity ≈ ₹85,00,000+ | Total Returns ≈ ₹63,00,000+