Step Up SIP Calculator
See how increasing your monthly SIP amount each year accelerates wealth creation. Even a 10% annual step-up dramatically outpaces a flat SIP over long horizons.
Step Up SIP inputs
What is a Step Up SIP?
A Step Up SIP (also called a Top Up SIP) is a Systematic Investment Plan where the monthly contribution is automatically increased by a fixed percentage every year. For example: you start with ₹5,000/month and step up 10% annually — so Year 2 becomes ₹5,500, Year 3 becomes ₹6,050, and so on.
Most salaried investors receive annual increments of 8–12%. Channelling even half of that raise into a step-up SIP creates a snowball that grows much faster than a flat SIP — because both the investment amount and the compounding work together.
The step-up SIP formula
There's no single closed-form equation. The calculator simulates month by month:
balancenext = (balance + SIPmonth) × (1 + r)Where SIPmonth = P × (1 + g)year, r = monthly rate, g = annual step-up rate.
Step Up vs flat SIP — a worked example
Starting ₹5,000/month, 12% return, 20 years:
- Flat SIP: invest ₹12L, corpus ≈ ₹49.9L
- 10% step-up SIP: invest ₹34.4L, corpus ≈ ₹1.64 cr — 3× more corpus, 2.9× more investment
- The extra corpus per extra rupee invested is substantially higher because later contributions have less time to compound — the step-up compensates for this dilution.
Practical tips
- Set step-up = 50–75% of your expected annual salary hike.
- Most AMC apps and fintech platforms let you automate the step-up — no manual action needed.
- For a conservative plan, use 5–7% step-up aligned with expected cost-of-living growth.
- If unsure, use our flat SIP calculator and compare side by side.
Want this number turned into a plan?
Step Up SIP Calculator answers the math. A step up sip calculator number lives inside a goal — retirement, tuition, a house, freedom. Sulekha Sen can map it to yours.
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