See how increasing your SIP by a fixed percentage each year dramatically grows your wealth.
Input your initial monthly SIP amount, annual step-up percentage, expected return rate, and investment duration to see how your wealth grows with annual increases.
| Year | SIP/Month | Invested This Year | Total Invested | Total Value |
|---|
For each year y (from 1 to N), the monthly SIP is:
SIP(y) = P x (1 + s)^(y-1)
Where P = initial monthly SIP, s = annual step-up rate (e.g. 0.10 for 10%). Each month's contribution is compounded at the monthly rate r = annual return / 12 / 100 for the remaining months until maturity. The total corpus is the sum of all monthly contributions compounded individually.
A Step-Up SIP (also called a Top-Up SIP) is a Systematic Investment Plan where your monthly investment amount increases by a fixed percentage every year. Instead of investing the same amount for the entire duration, you gradually increase your SIP in line with your growing income.
For example, if you start with a monthly SIP of ₹5,000 and set a 10% annual step-up, your SIP becomes ₹5,500/month in year 2, ₹6,050/month in year 3, and so on. This mirrors how your salary typically grows over time — your investments grow with your income.
The Step-Up SIP Calculator computes the future value of your investments by treating each year as a separate SIP with an increased amount. Here is the logic:
For each year y (1 to N):
Monthly SIP for year y = P x (1 + s)^(y-1)
Each monthly instalment within that year is compounded at the monthly rate for the remaining months until the end of the total investment period.
Where P = initial monthly SIP, s = annual step-up rate (decimal), r = monthly return rate (annual return / 12 / 100).
The calculator also computes a regular SIP (without step-up) using the same initial amount, return rate, and duration — so you can see exactly how much extra wealth the step-up generates.
Initial Monthly SIP: ₹5,000
Annual Step-Up: 10%
Expected Annual Return: 12%
Duration: 10 years
Regular SIP (no step-up): Total invested ₹6,00,000 → Corpus ₹11,61,695
Step-Up SIP (10% annual increase): Total invested ₹9,56,246 → Corpus ₹17,19,328
Extra earned with step-up: ₹5,57,633 more (48% higher)
By simply increasing your SIP by 10% each year — something most working professionals can afford as their salary grows — you accumulate nearly 48% more wealth over 10 years.
The table below shows how a ₹5,000/month SIP at 12% annual return compares with and without a 10% annual step-up over different durations:
| Duration | Regular SIP Corpus | Step-Up SIP Corpus | Extra Earned |
|---|---|---|---|
| 5 Years | ₹4.12 L | ₹4.89 L | ₹0.77 L (19%) |
| 10 Years | ₹11.62 L | ₹17.19 L | ₹5.58 L (48%) |
| 15 Years | ₹25.22 L | ₹46.89 L | ₹21.67 L (86%) |
| 20 Years | ₹49.46 L | ₹1.16 Cr | ₹66.17 L (134%) |
| 25 Years | ₹93.95 L | ₹2.76 Cr | ₹1.82 Cr (194%) |
Notice how the advantage of step-up SIP grows exponentially over time. At 25 years, the step-up SIP generates nearly 3 times the corpus of a regular SIP — that is the combined power of compounding and increasing contributions.
A Step-Up SIP is one of the simplest yet most powerful wealth-building strategies available to salaried investors. By committing to increase your SIP by just 10% each year — roughly matching your annual salary increment — you can potentially double or triple your retirement corpus compared to a fixed SIP. Start with what you can afford today, increase it every year, and let time and compounding work together to build your wealth.