Step-up SIP calculator
What happens when the instalment grows with your income rather than staying where it started.
The maths
How this is calculated.
A step-up SIP is a series of level SIPs, each one a year long and each larger than the last. The balance is carried forward month by month and the instalment raised once a year:
Bₙ₊₁ = (Bₙ + P) × (1 + i), with P → P × (1 + g) every twelfth month
Where P is the current instalment, g the annual step-up and i the monthly return. A closed form for a growing annuity exists but breaks when the step-up equals the return, so this iterates — exact, and fast enough to run as you type.
What it assumes. That the increase happens on the anniversary, every year, without fail, and that the return is constant.
Worked example
₹ 10,000 a month, rising 10 % a year.
At an assumed 12 % over ten years, a ₹ 10,000 SIP rising 10 % each year pays in about ₹ 19,12,000 and reaches roughly ₹ 33,74,000. The instalment in the final year is ₹ 23,579 — more than double where it started.
The same SIP held level at ₹ 10,000 reaches about ₹ 23,23,000. The difference is close to ₹ 10 lakh, and none of it comes from a better return: it comes from raising the instalment as income rose, which is the one variable in this calculation a person actually controls.
Questions about this calculator.
What step-up should I choose?
Something you can hold to. Matching your expected annual increment is the usual rule of thumb — 8 to 10 % for many salaried investors. A step-up you abandon in year three is worth less than a smaller one you keep.
Is a step-up better than just starting higher?
Starting higher wins at the same total, because the money is invested sooner. The step-up exists for the common case where you cannot start higher — it grows the instalment with the income that will support it.
Do fund houses support this automatically?
Most do, usually as a "top-up SIP" registered with a fixed percentage or amount and an annual frequency. Registering it once is considerably more reliable than intending to raise it manually each year.
Is my input sent anywhere?
No. The calculation runs in your browser. Nothing is submitted, stored or logged.
From the team behind Finvica — the operating platform for multi-product wealth practices. See the platform