Step Up SIP Calculator
Calculate how increasing your SIP amount annually accelerates wealth creation compared to a regular SIP.
Total Invested
₹9,56,268
Wealth Gained
₹7,30,931
Maturity Value
₹16,87,199
Extra vs Regular SIP
₹5,25,504
Growth Over Time
₹16,87,199
| Year | Invested | Step Up SIP | Regular SIP |
|---|---|---|---|
| 1 | ₹60,000 | ₹1,87,588 | ₹64,047 |
| 2 | ₹1,26,000 | ₹3,70,710 | ₹1,36,216 |
| 3 | ₹1,98,600 | ₹5,49,473 | ₹2,17,538 |
| 4 | ₹2,78,460 | ₹7,23,980 | ₹3,09,174 |
| 5 | ₹3,66,312 | ₹8,94,345 | ₹4,12,432 |
| 6 | ₹4,62,948 | ₹10,60,651 | ₹5,28,785 |
| 7 | ₹5,69,244 | ₹12,22,994 | ₹6,59,895 |
| 8 | ₹6,86,172 | ₹13,81,474 | ₹8,07,633 |
| 9 | ₹8,14,788 | ₹15,36,177 | ₹9,74,108 |
| 10 | ₹9,56,268 | ₹16,87,199 | ₹11,61,695 |
| Year | Monthly SIP | Invested | Value | Gains |
|---|---|---|---|---|
| 1 | ₹5,000 | ₹60,000 | ₹1,87,588 | ₹1,27,588 |
| 2 | ₹5,500 | ₹1,26,000 | ₹3,70,710 | ₹2,44,710 |
| 3 | ₹6,050 | ₹1,98,600 | ₹5,49,473 | ₹3,50,873 |
| 4 | ₹6,655 | ₹2,78,460 | ₹7,23,980 | ₹4,45,520 |
| 5 | ₹7,321 | ₹3,66,312 | ₹8,94,345 | ₹5,28,033 |
| 6 | ₹8,053 | ₹4,62,948 | ₹10,60,651 | ₹5,97,703 |
| 7 | ₹8,858 | ₹5,69,244 | ₹12,22,994 | ₹6,53,750 |
| 8 | ₹9,744 | ₹6,86,172 | ₹13,81,474 | ₹6,95,302 |
| 9 | ₹10,718 | ₹8,14,788 | ₹15,36,177 | ₹7,21,389 |
| 10 | ₹11,790 | ₹9,56,268 | ₹16,87,199 | ₹7,30,931 |
What is Step Up SIP?
A Step Up SIP (also called a Top Up SIP) is a systematic investment plan where you increase your monthly investment by a fixed percentage every year. For example, if you start with ₹5,000/month and set a 10% annual step up, your SIP becomes ₹5,500 in year 2, ₹6,050 in year 3, and so on. This aligns your investments with your growing income over time.
How Step Up SIP Works
In a step up SIP, each year's monthly amount is calculated as: Monthly Amount in Year Y = Initial Amount × (1 + Step Up %)^(Y-1). Each monthly installment then compounds at the expected rate of return until maturity. The total corpus is the sum of all compounded installments — which is significantly higher than a regular SIP because later years contribute larger amounts that still benefit from compounding.
Benefits of Step Up SIP
- Matches your investment growth with salary increments — invest more as you earn more
- Significantly higher corpus than regular SIP over long periods (often 40-60% more over 15-20 years)
- Helps beat inflation — your real investment value grows instead of eroding
- No extra effort required — most mutual fund platforms let you set automatic annual step ups
- Builds the habit of increasing savings rate gradually without lifestyle shock
FAQ: What is a good step up percentage?
A 10-15% annual step up is recommended for most investors. This roughly matches the average salary increment in India. If your income grows faster, you can go higher (up to 20-25%). Even a modest 10% step up on a ₹5,000 SIP over 20 years at 12% return can create over 2x the corpus compared to a flat ₹5,000 SIP.
FAQ: How much difference does step up make?
The difference is dramatic over long periods. For example, a ₹10,000/month SIP at 12% for 20 years gives about ₹1 crore. The same SIP with a 10% annual step up gives roughly ₹1.9 crore — nearly double the corpus. The longer the tenure, the bigger the gap because higher contributions in later years still get meaningful compounding.