Step-up SIP Calculator

Calculate returns with increasing SIP amounts over time

Investment Details

Typical: 5-15% (aligned with income growth/inflation)

How often you want to increase your SIP amount

Equity mutual funds: 12-15%, Debt funds: 6-8%

India average: 5-7%

Maturity Value

₹0

Total Invested:₹0
Estimated Returns:₹0
Returns:0%

Step-up Advantage

₹0

Regular SIP Value:₹0
Step-up SIP Value:₹0
Extra Wealth:0%

Inflation-Adjusted Value

Nominal Value₹0
Real Value (Today's Money)₹0
Purchasing Power Loss0%

Investment Summary

Initial SIP₹5,000
Final SIP Amount₹18,987
Total Invested₹0
Wealth Created₹0

Investment vs Returns

Investment0%
Returns0%

Year-by-Year Growth with Step-up

YearSIP AmountYear InvestmentTotal InvestedPortfolio ValueReturns
1₹5,000₹60,000₹60,000₹63,413₹3,413
2₹5,500₹66,000₹1,26,000₹1,41,209₹15,209
3₹6,050₹72,600₹1,98,600₹2,35,847₹37,247
4₹6,655₹79,860₹2,78,460₹3,50,160₹71,700
5₹7,321₹87,846₹3,66,306₹4,87,411₹1,21,105
6₹8,053₹96,631₹4,62,937₹6,51,354₹1,88,417
7₹8,858₹1,06,294₹5,69,230₹8,46,301₹2,77,070
8₹9,744₹1,16,923₹6,86,153₹10,77,206₹3,91,052
9₹10,718₹1,28,615₹8,14,769₹13,49,753₹5,34,984
10₹11,790₹1,41,477₹9,56,245₹16,70,459₹7,14,213
11₹12,969₹1,55,625₹11,11,870₹20,46,790₹9,34,920
12₹14,266₹1,71,187₹12,83,057₹24,87,298₹12,04,241
13₹15,692₹1,88,306₹14,71,363₹30,01,765₹15,30,402
14₹17,261₹2,07,136₹16,78,499₹36,01,381₹19,22,882
15₹18,987₹2,27,850₹19,06,349₹42,98,935₹23,92,586

Showing first 15 years only

SIP Amount Schedule (First 5 Years)

See how your SIP amount increases over time based on your step-up percentage

Month 1 (Year 1)
₹5,000
Month 12 (Year 1)
₹5,000
↑ STEP-UP Month 13 (Year 2)
₹5,500
🚀
Month 24 (Year 2)
₹5,500
↑ STEP-UP Month 25 (Year 3)
₹6,050
🚀
Month 36 (Year 3)
₹6,050
↑ STEP-UP Month 37 (Year 4)
₹6,655
🚀
Month 48 (Year 4)
₹6,655
↑ STEP-UP Month 49 (Year 5)
₹7,321
🚀
Month 60 (Year 5)
₹7,321

Step-up Rate Comparison

Compare different step-up percentages to see the impact on your final corpus

ScenarioTotal InvestmentMaturity ValueTotal ReturnsReturn %
No Step-up (0%)₹12,00,000₹49,46,277₹37,46,277312.2%
Conservative (5%)₹19,83,957₹68,00,804₹48,16,846242.8%
Moderate (10%)₹34,36,500₹98,45,899₹64,09,399186.5%
Aggressive (15%)₹61,46,615₹1,49,78,189₹88,31,574143.7%
Very Aggressive (20%)₹1,12,01,280₹2,37,83,534₹1,25,82,254112.3%

About Step-up SIP

What is Step-up SIP?

Step-up SIP (also known as Top-up SIP) is a smart investment strategy where you increase your SIP amount periodically - typically annually, half-yearly, or quarterly. This approach aligns your investments with your growing income, helping you save more without feeling the pinch. As your salary increases, so does your SIP, allowing you to accumulate significantly more wealth over time compared to regular SIP.

Why Choose Step-up SIP?

  • Aligns with income growth - increase investments as you earn more
  • Beats inflation - growing contributions maintain purchasing power
  • Creates substantially more wealth compared to regular SIP
  • Flexible - you can adjust step-up percentage anytime
  • Disciplined wealth creation without lifestyle compromise
  • Accelerates goal achievement (retirement, house, education)
  • Leverages power of compounding on increasing amounts

How Step-up SIP Works

Example: Let's say you start with ₹5,000/month SIP with 10% annual step-up:

  • • Year 1: ₹5,000/month = ₹60,000/year
  • • Year 2: ₹5,500/month = ₹66,000/year (10% increase)
  • • Year 3: ₹6,050/month = ₹72,600/year (10% increase)
  • • Year 4: ₹6,655/month = ₹79,860/year (10% increase)
  • • Year 5: ₹7,321/month = ₹87,846/year (10% increase)

In 20 years @ 12% return: Step-up SIP = ₹1.24 Cr vs Regular SIP = ₹50 Lakhs

Ideal Step-up Percentage

Conservative (5-7%):

Matches typical salary increments. Safe and sustainable for most investors.

Moderate (10-12%):

Ideal for mid-career professionals. Balances growth with affordability.

Aggressive (15-20%):

For high earners or those with rapid career growth. Maximum wealth creation.

Step-up Frequency Options

FrequencyIncreases Per YearBest For
Yearly1Salaried with annual appraisals
Half-Yearly2Variable income, bonuses
Quarterly4Business owners, frequent raises

When to Use Step-up SIP?

  • ✅ Long-term goals (10+ years): Retirement, children's education, wealth creation
  • ✅ Growing income: Early to mid-career professionals expecting salary growth
  • ✅ Inflation protection: Want investments to keep pace with rising costs
  • ✅ Large financial goals: Need to accumulate substantial corpus
  • ✅ Disciplined investing: Want systematic increase without manual intervention

Step-up SIP vs Regular SIP

AspectRegular SIPStep-up SIP
Monthly AmountFixed throughoutIncreases periodically
Total InvestmentLowerHigher
Wealth CreatedGoodExcellent (60-100% more)
Inflation ImpactErodes over timeBetter protected
FlexibilityVery simpleAdjustable percentage

Tax Implications

  • ELSS SIP qualifies for ₹1.5L deduction under Section 80C
  • Long-term capital gains (after 1 year) on equity funds: 12.5% above ₹1.25L
  • Short-term capital gains on equity funds: 20%
  • Debt fund gains: As per income tax slab rates
  • Step-up increases don't affect tax treatment

⚠️ Important Considerations

  • • Ensure your income growth supports the step-up percentage
  • • Don't overcommit - maintain emergency fund first
  • • You can skip or reduce step-up during financial difficulties
  • • Review and adjust step-up percentage annually
  • • Higher step-up means higher commitment - plan accordingly
  • • Market volatility affects returns, not guaranteed
  • • Choose appropriate funds based on risk appetite and goals

💡 Pro Tips for Step-up SIP

  • • Link step-up to your annual salary increment (typically 8-12%)
  • • Start with conservative 5-7% if unsure, increase later
  • • Use yearly step-up for simplicity and better planning
  • • Set up auto-debit to ensure disciplined investing
  • • Review portfolio annually, rebalance if needed
  • • Consider higher step-up in early career (compound effect)
  • • Use calculators to plan for specific financial goals
  • • Don't stop during market corrections - that's when you benefit most