A step-up (or top-up) SIP automatically increases your monthly investment by a fixed percentage every year, usually in line with an expected rise in income. Because later instalments are larger, a step-up SIP can build a meaningfully bigger corpus than a flat SIP of the same starting amount, without requiring a large jump in the amount you commit today.
Enter your starting monthly SIP, the annual step-up percentage, expected return and tenure to see the total invested and the projected maturity value.
Step-up SIP Calculator
Model a SIP where your monthly investment increases every year.
Step-up is applied once a year to the monthly instalment. Assumes constant monthly compounding return; actual returns will vary.
How this is calculated
The calculator simulates the SIP month by month: each year’s monthly instalment is compounded at the monthly rate of return, and at the start of every subsequent year the instalment amount is increased by your chosen step-up percentage. This is more accurate for a step-up SIP than using the flat annuity formula, since the instalment amount itself is changing over time.
Why step-up SIPs are popular
Most salaried investors get annual increments, so committing to raise your SIP by even 5-10% a year, rather than keeping it flat, captures that rising income without feeling like a big new expense. Over a 15-20 year horizon the difference in final corpus between a flat SIP and a step-up SIP of the same starting amount can be substantial.
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Frequently asked questions
How much should I step up my SIP every year?
A common rule of thumb is to step up by roughly the same percentage as your annual salary increment, often in the 5-15% range, though this depends on your personal cash flow.
Is a step-up SIP different from a regular SIP in terms of fund selection?
No, it’s the same underlying mutual fund investment. The step-up only changes how much you invest each year, not which fund you invest in.
Can I reduce the step-up percentage later if my income doesn’t grow as expected?
Yes, most fund houses let you modify or pause a step-up SIP mandate; check with your specific AMC or platform for the process.