Step-up SIP Calculator
A step-up (or top-up) SIP increases the monthly instalment once a year — typically in line with a salary increment. Because the larger instalments arrive early enough to compound for years, even a modest 10% annual step-up routinely ends up adding 40–60% more corpus over a 15–20 year horizon.
This calculator projects the step-up SIP and, alongside it, the same SIP without any increase — so you can see exactly what the yearly hike is worth.
How it works
- Year 1 uses your starting monthly amount; every 12 months the instalment rises by the step-up percentage.
- Each instalment is invested at the start of its month and compounds monthly at the assumed return.
- The flat-SIP comparison keeps the starting amount unchanged for the whole period.
Frequently asked questions
How much should I step up my SIP each year?
A common rule is to match your expected salary growth — 5–10% a year. The point is to stop your investment rate from falling in real terms as your income and expenses grow. Even 5% compounds into a visibly larger corpus over long horizons.
Why is the difference vs a normal SIP so large?
Two compounding effects stack: you invest more rupees in total, and the increases arrive every year — so a good part of the extra money still gets a decade or more of compounding. The longer the horizon, the wider the gap.
Can I step up an existing SIP?
Most AMCs and platforms let you register a top-up/step-up instruction on an existing SIP, or you can simply start a second SIP for the increment. The maths is the same either way.
Is a step-up SIP taxed differently?
No — it is ordinary mutual fund investing. Each instalment carries its own holding period; equity fund gains follow the usual LTCG (12.5% above ₹1.25 lakh, after 12 months) and STCG (20%) rules.
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This tool is an educational estimate, not investment or tax advice. Rates and rules change — verify current figures and consult a professional before acting.