Step-up SIP Calculator
A step-up SIP increases your monthly investment by a fixed percentage every year, usually in line with your income. Even a modest yearly increase can add a large amount to the final value over a long period, because the later, larger instalments are added on top of money that has already grown.
Step-up SIP Calculator
Example values are shown to start with. Change them to your own numbers. Everything is calculated in your browser.
Enter your starting SIP, the yearly step-up and the return you expect. The calculator shows the maturity value, the total you invested, the gain, and the size of the monthly SIP in the final year.
Worked example
With the starting values below, the calculator gives the results in the second table.
| Starting monthly SIP | ₹5,000 |
|---|---|
| Yearly step-up | 10% |
| Expected return | 12% |
| Years | 10 |
| Maturity value | ₹16,87,163.13 |
|---|---|
| Amount invested | ₹9,56,245.48 |
| Wealth gained | ₹7,30,917.66 |
| Last year's monthly SIP | ₹11,789.74 |
How to use this calculator
- Enter the monthly SIP you will start with.
- Enter the percentage by which you will raise it every year.
- Enter the expected annual return and the number of years.
- Read the maturity value, total invested, wealth gained and the final-year monthly SIP.
Formula
- i is the monthly rate: expected annual return ÷ 12 ÷ 100.
- The SIP stays the same within a year and rises only at the start of the next year.
Assumptions
- Returns are steady and compounded monthly.
- The step-up percentage is applied once a year, at the end of each twelve months.
- Taxes, fund charges and inflation are not included.
Limitations
- Real returns vary from year to year.
- The step-up is a simple percentage. If your SIP rises by a fixed amount instead, the result will differ.
Frequently asked questions
What is a step-up SIP?
It is a SIP whose monthly amount rises by a set percentage each year, so your investment grows along with your income.
How much difference does a 10% step-up make?
Over long periods the difference is large, because later years contribute more money. Compare this calculator with the plain SIP calculator using the same starting amount and return.
Can I step up by a fixed amount instead of a percentage?
Not on this page. It uses a percentage step-up, which is how most step-up SIP facilities work.
Does the result include inflation?
No. A larger number in the future buys less than the same number today, so consider the real value as well.
Related calculators
- SIP CalculatorEstimate the maturity value of a monthly SIP investment.
- Lumpsum CalculatorGrowth of a one-time investment at a steady yearly return.
- CAGR CalculatorCompound annual growth rate between a starting and ending value.
Sources and method
Calculated month by month with the formula above. See how our calculators work.
Results are estimates for planning only and are not financial, tax or legal advice. Rates, rules and your own circumstances can change the outcome. Read our disclaimer.