Step-Up SIP Calculator
Maximize compounding by stepping up your monthly SIP contributions annually. Model compound interest, target inflation rates, and capital gains tax on mutual funds.
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How a Step-Up SIP Builds a Larger Corpus
A step-up SIP (also called a top-up SIP) starts with a fixed monthly instalment and increases it by a set percentage every year, 10% is the common default, broadly in line with a typical annual increment. Rather than deciding each year whether to save the raise or spend it, you commit to the increase in advance. If the concept is new, begin with our guide to what a SIP is.
The mechanics shape how the money grows. Early instalments stay invested the longest and compound for the full tenure, while each later instalment compounds for a shorter period. The money added in the final year grows for only about a year. Even so, an annual step-up builds a far larger corpus than a fixed instalment, because contributions keep pace with your income. A ₹10,000 monthly SIP stepped up 10% a year at a 12% CAGR grows to about ₹83 lakh over 15 years, against about ₹48 lakh for a flat ₹10,000 SIP, though the step-up route also invests roughly ₹20 lakh more in total.
Two practical effects follow. First, stepping up can keep your investing ahead of inflation, which a flat instalment slowly falls behind. Second, since returns are expressed as a CAGR, this calculator applies the same monthly compounding used across the site, so the figures stay comparable. To check the fixed-instalment alternative, run the same numbers in the flat SIP calculator; if you already know the corpus you want, work backwards with the reverse SIP calculator.
Popular Step-Up SIP Calculations
Click on any of the popular search scenarios below to load the calculator with pre-configured values:
- If I invest ₹5,000 per month and step up 10% every year for 15 years at 12% return
- If I invest ₹10,000 per month and step up 10% every year for 20 years at 12% return
- If I start with ₹3,000 per month and step up 10% every year for 10 years
- If I invest ₹25,000 per month with a 5% annual step-up for 25 years at 10% return
- If I invest ₹5,000 per month and step up 15% every year for 20 years at 12% return
- If I invest ₹20,000 per month and step up 10% every year for 30 years at 12% return
Frequently Asked Questions
Formula & Mathematical Approach
Step-Up SIP simulates the growth of an investment where the monthly deposit increases by a fixed percentage annually.
Show Plain Text / Excel Formula
Investment (Year y) = Monthly SIP * (1 + Step-up % / 100) ^ (y - 1) Future Value = Compounded monthly using the annual step-up increment.
Key Assumptions
- The step-up increment is applied exactly once at the beginning of each new year.
- Compounding is calculated monthly using the equivalent CAGR rate.
- Rate of return remains constant over the duration.
- All contributions are made at the beginning of each month.
- Tax rules are estimated based on regulations last reviewed in June 2026.