What is a Step-Up SIP?
A step-up SIP (also called a top-up SIP) is a SIP whose monthly amount increases by a fixed percentage or amount every year. For example, you start at ₹10,000 a month and raise it by 10% each year, so it becomes ₹11,000 in year 2, ₹12,100 in year 3 and so on. Because most salaries rise every year, a step-up SIP lets your investments grow along with your income without extra effort.
This step-up SIP calculator compares your increasing SIP with a regular SIP of the same starting amount, so you can see exactly how much extra wealth the yearly increase creates.
How the Step-Up SIP Calculator Works
The calculator treats the SIP amount as constant within a year and raises it at the start of every new year:
Corpus = Σ (each monthly instalment) × (1 + monthly rate)months remaining
Each instalment is compounded at the monthly rate (annual return ÷ 12) until the end of the chosen period. The total of all these values is the final corpus.
Step-Up SIP vs Regular SIP: Examples
| Start SIP | Step-up | Years | Return | Total invested | Step-up corpus | Regular SIP corpus | Extra wealth |
|---|---|---|---|---|---|---|---|
| ₹5,000 | 10% | 10 | 12% | ₹9,56,245 | ₹16,87,163 | ₹11,61,695 | ₹5,25,468 |
| ₹10,000 | 10% | 15 | 12% | ₹38,12,698 | ₹86,83,849 | ₹50,45,760 | ₹36,38,089 |
| ₹10,000 | 5% | 20 | 12% | ₹39,67,914 | ₹1,37,37,623 | ₹99,91,479 | ₹37,46,144 |
| ₹10,000 | 10% | 20 | 12% | ₹68,73,000 | ₹1,98,88,715 | ₹99,91,479 | ₹98,97,236 |
Example: ₹10,000 SIP with a 10% yearly step-up for 20 years
A regular SIP of ₹10,000 builds about ₹99.91 lakh. With a 10% annual step-up the same plan builds about ₹1.99 crore, nearly double, for an extra investment of ₹44.7 lakh spread over 20 years. In the last year you invest about ₹61,000 a month, which is easy if your income also doubled over two decades.
How to Use This Step-Up SIP Calculator
- Enter your starting monthly SIP.
- Choose the annual step-up, usually close to your expected salary hike (5% to 10%).
- Set the expected return and the investment period.
- Compare the step-up corpus with the regular SIP corpus and save the report with Preview & Save.
Tip: Use a step-up you can sustain even in a year with a small hike. You can always pause the step-up while continuing the SIP.
Benefits of a Step-Up SIP
- Bigger corpus without a big start: begin with an amount you are comfortable with.
- Beats inflation: your investment grows faster than rising costs.
- Automatic discipline: many fund houses let you set the step-up once at the time of starting the SIP.
- Better for long goals: retirement, child’s education and home down payment.
Compare it with a plain SIP using our SIP calculator, and with a one-time investment using the lumpsum calculator.
Things to Remember
- Mutual fund returns are market-linked and not guaranteed. The calculator shows a projection, not a promise.
- Not every fund house offers a step-up facility, and the options (percentage or fixed amount, yearly or half-yearly) differ.
- A high step-up raises the later instalments sharply, so check that they remain affordable.
How to Choose Your Step-Up Percentage
A good starting point is the average salary hike you expect. If your pay rises 8% a year, a 5% to 8% step-up keeps your SIP at a steady share of income. If you receive large hikes or bonuses, a higher step-up such as 10% to 15% can build wealth much faster. A fixed-rupee step-up (for example, ₹1,000 more every year) is also available in many funds and is easier to afford.
| Step-up | Monthly SIP amount in year 10 for a ₹10,000 start |
|---|---|
| 0% | Still ₹10,000 a month |
| 5% | About ₹15,513 a month |
| 10% | About ₹23,579 a month |
| 15% | About ₹35,179 a month |