Step-Up SIP Calculator
Estimate how much wealth a rising SIP can create when your monthly investment increases every year, and compare it with a fixed SIP using the same starting amount.
Assumptions and limitations
- Monthly investments are made at the beginning of each month and compound monthly.
- The selected annual return is treated as constant across the full period.
- The step-up is applied at the start of each new year.
- Taxes, expense ratio, exit load and transaction costs are not included.
Illustrative projections only
SmartFintool provides mathematical calculations and educational information. It does not provide personalised investment advice. Mutual fund returns are not guaranteed and tax rules can change.
- Page last updated:
- Methodology reviewed:
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₹10.00 K
Monthly SIP becomes ₹37.97 K in year 15
Estimated Corpus
₹86.84 Lakh
15 years at 12% assumed return
Total Invested
₹38.13 Lakh
Estimated Returns
₹48.71 Lakh
Fixed SIP Corpus
₹50.46 Lakh
Step-up vs fixed SIP
Fixed SIP
₹50.46 Lakh
Invests ₹18.00 Lakh
Step-up SIP
₹86.84 Lakh
Advantage: ₹36.38 Lakh
Yearly contribution growth
| Year | Monthly SIP | Invested | Projected 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 |
| 11 | ₹25,937 | ₹22,23,740 | ₹41,34,516 |
| 12 | ₹28,531 | ₹25,66,114 | ₹50,24,342 |
| 13 | ₹31,384 | ₹29,42,725 | ₹60,63,565 |
| 14 | ₹34,523 | ₹33,56,998 | ₹72,74,790 |
| 15 | ₹37,975 | ₹38,12,698 | ₹86,83,849 |
How the step-up SIP calculation works
The calculator compounds every monthly contribution at the selected monthly rate and increases the SIP by the chosen percentage at the beginning of each year. It then repeats the same calculation with a zero step-up to show the fixed-SIP comparison.
A step-up SIP is useful when income is expected to rise. It allows investors to start with an affordable amount and increase savings as their career progresses.
Frequently Asked Questions
What is a step-up SIP?
A step-up SIP increases your monthly investment by a fixed percentage every year, usually linked to income growth. It can build a larger corpus than a fixed SIP with the same starting amount.
Is 10% step-up realistic?
A 10% annual increase can be a reasonable planning assumption if your income grows over time, but it is not guaranteed. Use a step-up rate you can sustain without compromising emergency savings and insurance.
Does this calculator guarantee returns?
No. All projected values are illustrative and use a constant expected return. Actual mutual fund returns vary and can be negative in some periods.
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Methodology
See the exact step-up formula.