Step-Up SIP Calculator

See how increasing your SIP amount annually accelerates wealth creation.

Breakdown

Invested

19,06,349

Wealth Gained

24,35,576

Total Value

43,41,925

Schedule

YearInvestedValue
1₹60,000₹64,047
2₹1,26,000₹1,42,621
3₹1,98,600₹2,38,205
4₹2,78,460₹3,53,661
5₹3,66,306₹4,92,285
6₹4,62,937₹6,57,867
7₹5,69,230₹8,54,764
8₹6,86,153₹10,87,978
9₹8,14,769₹13,63,250
10₹9,56,245₹16,87,163
11₹11,11,870₹20,67,258
12₹12,83,057₹25,12,171
13₹14,71,363₹30,31,783
14₹16,78,499₹36,37,395
15₹19,06,349₹43,41,925

What is Step-Up SIP (Top-Up SIP)?

A Step-Up SIP (also called Top-Up SIP) is a variation of a regular SIP where the investment amount increases every year by a fixed percentage. This allows investors to gradually increase their contributions as their income grows, helping build a larger investment corpus over time.

Unlike a regular SIP where the monthly investment stays constant, a Step-Up SIP increases the SIP amount once every year by a fixed step-up rate.

How Step-Up SIP (Top-Up SIP) Works

For example, if your SIP starts at ₹10,000 per month and you choose a 10% annual step-up, your monthly SIP becomes: Year 1: ₹10,000, Year 2: ₹11,000, Year 3: ₹12,100, and so on.

This approach helps investors align investments with salary growth and significantly increase long-term returns through compounding.

Monthly Investments

Regular monthly contributions like a standard SIP

Annual Step-Up

SIP amount increases yearly by a fixed percentage

Monthly Compounding

Interest is compounded monthly for maximum growth

Annuity Due Model

SIP invested at the start of each month for extra compounding

Calculation Method

Formula:

M = A × ((1 + R)^n − (1 + G)^n) / (R − G)

Where:

  • M = Final investment value (corpus)
  • A = Annual SIP value adjusted for monthly compounding
  • R = Annual investment return rate
  • G = Annual step-up growth rate
  • n = Number of years invested

Assumptions:

  • Monthly investments
  • Annual step-up increase
  • Monthly compounding
  • If R = G, simplified formula applies

Key Benefits

Income Aligned

Investments grow with your income over the years

Larger Corpus

Builds a much bigger corpus compared to regular SIP

Compounding Maximized

Increasing contributions amplify long-term compounding

Salary Increment Friendly

Ideal for investors expecting annual raises

Important Disclaimer

This calculator provides estimated projections for planning purposes only. Mutual fund investments are market-linked, and actual returns may vary depending on market conditions and fund performance.

Always review scheme details and consult financial professionals before making investment decisions.