Step-up SIP Calculator
Estimate a SIP that rises by a fixed % every year, and compare it with a flat SIP.
Estimated value
16.87 lakhCompared with a flat SIP
Year-wise growth
| Year | Monthly SIP | Invested | Value | Flat SIP value |
|---|---|---|---|---|
| 1 | ₹5,000 | ₹60,000 | ₹64,047 | ₹64,047 |
| 2 | ₹5,500 | ₹1,26,000 | ₹1,42,621 | ₹1,36,216 |
| 3 | ₹6,050 | ₹1,98,600 | ₹2,38,205 | ₹2,17,538 |
| 4 | ₹6,655 | ₹2,78,460 | ₹3,53,661 | ₹3,09,174 |
| 5 | ₹7,321 | ₹3,66,306 | ₹4,92,285 | ₹4,12,432 |
| 6 | ₹8,053 | ₹4,62,937 | ₹6,57,867 | ₹5,28,785 |
| 7 | ₹8,858 | ₹5,69,230 | ₹8,54,764 | ₹6,59,895 |
| 8 | ₹9,744 | ₹6,86,153 | ₹10,87,978 | ₹8,07,633 |
| 9 | ₹10,718 | ₹8,14,769 | ₹13,63,250 | ₹9,74,108 |
| 10 | ₹11,790 | ₹9,56,245 | ₹16,87,163 | ₹11,61,695 |
Values at the end of each year. "Flat SIP value" keeps the starting amount every month.
How it works
Each year's monthly amount is the starting amount increased by the step-up once a year:
Monthly amount in year y = A × (1 + s)y − 1
Every instalment is invested at the start of its month and grows at i = expected return ÷ 12 ÷ 100 a month until the end of the period. Twelve start-of-month instalments of a in one year are worth a × F at the end of that year:
F = ((1 + i)12 − 1) ÷ i × (1 + i)
Each year's block then keeps growing for the remaining years, so the final value is:
Value = Σ A × (1 + s)y − 1 × F × (1 + i)12 × (Y − y), for y = 1 to Y
- A = starting monthly investment, s = annual step-up as a decimal
- i = monthly return, Y = number of years
The flat SIP comparison uses the plain SIP formula with A every month. With a 0% step-up the two are the same.
Worked example
You start with ₹1,000 a month, step it up by 10% a year, and assume 12% a year for 2 years.
- Monthly return i = 12 ÷ 12 ÷ 100 = 0.01
- F = ((1 + i)12 − 1) ÷ i × (1 + i) = 12.809328
- Year 1: ₹1,000 a month is worth ₹1,000 × 12.809328 =₹12,809.33 after year 1, and grows for another 12 months to₹14,433.87
- Year 2: ₹1,100 a month is worth ₹1,100 × 12.809328 =₹14,090.26
- Value = ₹14,433.87 + ₹14,090.26 = ₹28,524.13
- Invested = 12 × ₹1,000 + 12 × ₹1,100 = ₹25,200
- A flat SIP of ₹1,000 for 2 years would be worth ₹27,243.20 on₹24,000 invested.
Frequently asked questions
What is a step-up SIP?
A step-up SIP (also called a top-up SIP) is a SIP where you raise your monthly investment by a fixed percentage once a year. For example, ₹5,000 a month with a 10% step-up becomes ₹5,500 a month in year 2, ₹6,050 in year 3, and so on.
How is a step-up SIP different from a regular SIP?
A regular (flat) SIP invests the same amount every month for the whole period. A step-up SIP increases the amount every year, so you invest more in total and, at the same return rate, end with a larger value. This page shows both side by side; the plain SIP calculator covers flat SIPs only.
How does this calculator work out the value?
It uses the same convention as our SIP calculator: each instalment is invested at the start of the month and grows at the yearly return ÷ 12 every month. The monthly amount is raised by the step-up percentage at the start of each new year, and every instalment is added up month by month.
What step-up percentage should I choose?
Choose an increase you can keep paying every year. Many people link it to how much they expect their income to grow. Try a few rates to see how the final value changes; even a small yearly step-up makes a large difference over a long period.
Does a step-up SIP earn a higher return rate?
No. The return rate is the same assumption you enter for both. The step-up SIP ends with more money mainly because you invest more. Compare the "Invested" and "Value" columns to see how much comes from extra investment and how much from growth.
Can I step up by a fixed rupee amount instead of a percentage?
This calculator uses a percentage. A fixed rupee increase grows your SIP more slowly over time than a percentage increase of the same starting size. To approximate it, choose the percentage that matches your first-year increase and remember later years will be slightly overstated.
Why will my actual fund value be different?
Mutual fund returns are not fixed. Real values depend on the fund's NAV on each investment date, which goes up and down. Your step-up may also apply on a different date than the start of each year. Use these figures as an estimate, not a promise.