See how much a SIP could grow to, if you increase your monthly amount every year — just like how most people's income grows over time.
The monthly SIP amount increases by your chosen percentage at the start of each year.
Each year's contributions compound for their own remaining time until maturity.
Each year: Monthly SIP × (1 + step-up%)
A step-up SIP calculator projects the value of a monthly investment that does not stay flat. You choose a starting SIP, and the calculator raises it by a fixed percentage once every year, the way many salaried people in India raise their SIP after an appraisal or a yearly increment.
The question it answers is: if I start with a comfortable amount today and grow it each year, where could I end up? It is useful for young earners whose current budget is tight but whose income is likely to rise, and for anyone who wants to see how much of the final corpus comes from the step-up alone.
Most fund houses let you register a top-up or step-up instruction with the SIP mandate, so the increase happens automatically. This calculator shows what that instruction is worth in rupees before you set it up.
1. Write down the starting monthly SIP S, the expected annual return R%, the number of years N and the annual step-up g%.
2. Convert the annual return to a monthly rate: i = R ÷ 12 ÷ 100.
3. For each month, update the balance: balance = balance × (1 + i) + current SIP. This treats each instalment as invested at the end of the month.
4. After every 12 months, raise the SIP: new SIP = old SIP × (1 + g ÷ 100).
5. Repeat for all N × 12 months. The balance after the last month is the maturity value.
6. Add up every instalment you paid to get the total invested, and subtract it from the maturity value to get the wealth gained.
Think of year 1 as a 12-month SIP of S, year 2 as a 12-month SIP of S(1 + g), year 3 as S(1 + g)², and so on. Each yearly block earns interest for its own months, then keeps compounding as a lump sum until maturity. The final value is the sum of all these blocks. There is a closed-form formula for this growing annuity, but it is messy because the SIP changes yearly while interest compounds monthly. A month-by-month loop, which is what this calculator runs, is simpler and cannot go wrong on the algebra.
A 10% step-up makes year-15 instalments about 3.8 times the year-1 amount, so the total invested rises sharply. But those large late instalments have only a few years to grow. The early, smaller ones compound for the longest time. As a result, the wealth gained grows more slowly than the amount invested when you add a step-up. The step-up mainly increases what you put in, and compounding then adds a smaller multiple on top. This is still very effective, because it raises contributions exactly when you can afford them.
This calculator adds each instalment at the end of its month, so the instalment earns no interest in the month it is paid. Many plain SIP calculators, including the site's standard SIP tools, assume payment at the start of the month, which gives one extra month of growth to every instalment. So if you set the step-up to 0% here, you will see a slightly smaller figure than a plain SIP calculator shows for the same inputs. The gap is roughly one month of return, which is small next to the effect of the step-up itself.
Karthik, 27, starts a ₹8,000 monthly SIP in an index fund and plans to raise it by 8% every April after his increment, expecting 11% a year for 20 years.
Answer: Maturity value ₹1,20,84,418; Total invested ₹43,93,149; Wealth gained ₹76,91,269
Choosing a step-up far above your expected salary growth, so the SIP becomes unaffordable in later years and gets stopped.
Comparing the step-up result with a flat SIP of the same starting amount and crediting the whole difference to compounding, when most of it is simply extra money invested.
Assuming the step-up percentage applies every month; it applies once a year.
Using a high return assumption such as 15% for 20 years, which makes the projection look far better than a realistic diversified equity return.
Forgetting that the maturity value is in future rupees; a large figure 20 years out buys much less than it would today.
Deciding what step-up percentage to register with a new SIP mandate.
Planning retirement or a child's education when current income is modest but expected to grow.
Showing a young employee the difference between a flat SIP and one that keeps pace with increments.
Checking whether a stepped-up SIP alone can reach a target corpus without a larger lump sum later.
Why step up a SIP instead of keeping it flat?
As your income grows, a fixed SIP becomes a smaller part of your earnings. Increasing it along with your income helps you build a much larger fund, without the increase feeling hard.