Step-up SIP Calculator – Increase SIP Every Year
Model a SIP that rises by a fixed percentage each year as your income grows. Calculated instantly in your browser.
Chacha's tip
Small changes move the numbers more than you'd think. Tap one to try it.
Saved scenarios (0)
- Saved only in this browser.
Expected value
₹86.8 L
₹86,83,849
- Total invested
- ₹38,12,698
- Estimated returns
- ₹48,71,152
- Monthly SIP in final year
- ₹37,975
Year-by-year step-up SIP growth
| Year | Monthly SIP | Invested | Value |
|---|---|---|---|
| 1 | ₹10,000 | ₹1,20,000 | ₹1,28,093 |
| 2 | ₹11,000 | ₹2,52,000 | ₹2,85,241 |
| 3 | ₹12,100 | ₹3,97,200 | ₹4,76,410 |
| 4 | ₹13,310 | ₹5,56,920 | ₹7,07,323 |
| 5 | ₹14,641 | ₹7,32,612 | ₹9,84,570 |
| 6 | ₹16,105 | ₹9,25,873 | ₹13,15,734 |
| 7 | ₹17,716 | ₹11,38,461 | ₹17,09,527 |
| 8 | ₹19,487 | ₹13,72,307 | ₹21,75,956 |
| 9 | ₹21,436 | ₹16,29,537 | ₹27,26,501 |
| 10 | ₹23,579 | ₹19,12,491 | ₹33,74,326 |
How it's calculated
SIPᵧ = P × (1 + s)^(y − 1)
Balance after each month = (Balance + SIPᵧ) × (1 + i), i = annual rate ÷ 12
The calculator simulates every month: add the instalment, then apply a month of growth. The instalment is raised once a year by the step-up percentage.
Assumptions
- Constant return and annual step-up.
- Instalments at the start of each month; nominal monthly rate = annual ÷ 12.
How to use this calculator
- Enter starting SIP. Set your first-year monthly SIP.
- Set annual step-up. Choose the percentage by which the SIP rises every year.
- Set return and duration. Enter expected annual return and the time period.
- Compare. Pin the result as Scenario A, set the step-up to 0% and compare.
Frequently asked questions
What is a step-up SIP?
A step-up (or top-up) SIP increases your monthly instalment by a fixed percentage or amount at set intervals, typically every year, so your investing grows with your income.
How is a step-up SIP calculated?
The instalment in year y is P × (1 + s)^(y−1), where s is the annual step-up. Each month's instalment is invested at the start of the month and compounds at the monthly rate (annual rate ÷ 12) until the end.
How much difference does a 10% step-up make?
A lot. With ₹10,000/month at 12% for 20 years, a flat SIP grows to about ₹1 crore, while a 10% annual step-up grows to about ₹2 crore. Try it by setting the step-up to 0% and then 10%.
What step-up percentage is realistic?
Match it to your expected salary growth, often 5-10%. A smaller but sustainable step-up beats an aggressive one you cannot keep up.
Do all mutual funds support step-up SIPs?
Most AMCs and platforms let you set a step-up at registration. Check the minimum step-up amount and frequency with your platform.
Is the step-up applied monthly or yearly here?
Yearly. The instalment stays constant within a year and rises at the start of the next year.
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Results from FinanceChacha are estimates for planning and education, not financial, tax or legal advice.