Step-up SIP Calculator
See how increasing your SIP every year supercharges your wealth
Total Value at Maturity
₹0
What is a Step-up SIP?
A Step-up SIP (also called a Top-up SIP) is a SIP where you automatically increase your monthly investment by a fixed percentage every year. Since your salary usually grows each year, stepping up your SIP by 10% annually keeps your investing in line with your income — and the extra contributions compound to a dramatically larger corpus.
Why Step-up SIP Beats Regular SIP
In a regular SIP, ₹5,000/month stays ₹5,000 for 15 years. With a 10% annual step-up, that ₹5,000 becomes ₹5,500 in year 2, ₹6,050 in year 3, and so on. These rising contributions — invested in your earning years and compounded the longest — can grow your final wealth by 40–70% compared to a flat SIP.
How It's Calculated
For each year, the monthly SIP grows by the step-up rate:
Year 1 monthly = P
Year 2 monthly = P × (1 + g)
Year 3 monthly = P × (1 + g)^2 ...
Each month's contribution then compounds at the
monthly return rate until maturity.
P = Starting Monthly SIP
g = Annual Step-up Rate
r = Monthly Return = (Annual Rate / 100) / 12
Frequently Asked Questions
What step-up percentage should I choose?
10% per year is a popular choice as it roughly matches average salary hikes in India. If you expect faster income growth, you can choose 15% or more. Even a 5% step-up makes a meaningful difference over the long run.
Do mutual funds actually support step-up SIPs?
Yes. Most fund houses and platforms let you set an automatic annual top-up (by a fixed amount or percentage) when you start your SIP, so you don't have to increase it manually each year.
Is step-up SIP better than increasing tenure?
Both help. Stepping up puts more money to work in your peak earning years, while a longer tenure gives compounding more time. Combining both — a long tenure with an annual step-up — gives the best results.
Does this calculator show pre-tax returns?
Yes, this shows pre-tax maturity value. Equity mutual fund gains held over 1 year are taxed as LTCG at 12.5% above ₹1.25 lakh per year. Consult a tax advisor for planning.