As income grows, many investors want their SIP to grow with it rather than staying flat. A step-up (or "top-up") SIP increases the monthly investment by a chosen percentage each year, which can meaningfully increase the final corpus compared to a flat SIP of the same starting amount.
How to Use This Calculator
- Enter your initial monthly SIP amount.
- Enter the annual step-up (increase) percentage.
- Enter your expected annual rate of return and investment period.
- View your total invested amount and projected corpus, compared with a flat SIP.
How the Calculation Works
Each year's monthly contribution is increased by the step-up percentage over the previous year: Contribution(year n) = Initial SIP × (1 + Step-Up%)^(n−1). Each year's monthly instalments are then compounded at the expected monthly return for their remaining time in the market, and all years are summed for the total future value.
Worked Example
Starting at ₹10,000/month with a 10% annual step-up, your monthly investment becomes ₹11,000 in year 2, ₹12,100 in year 3, and so on — see the calculator above for the resulting projected corpus at your chosen return rate and tenure.
Who Should Use This
Investors expecting regular salary increments who want their investment discipline to scale with income rather than stay fixed in nominal terms.
Important Considerations
Like the standard SIP calculator, this relies on an assumed, non-guaranteed rate of return. It also assumes you consistently increase your contribution every year without interruption, which may not match real-world cash flow variability.
Common Mistakes
Setting an aggressive step-up percentage without checking whether it is realistic against expected income growth can produce an overly optimistic projection.
References
See also the standard SIP Calculator for a flat-contribution comparison.