Use the FinMinutes’ Step Up SIP Calculator to estimate how increasing monthly investments (annual step-ups) build wealth over time.
Step-Up SIP Calculator
Compare a Regular SIP with a Step-Up SIP and see how much extra wealth you create.
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Unlike a normal SIP, where you invest a fixed amount monthly, a step-up SIP allows you to gradually increase your monthly investment by a fixed percentage, usually aligned with salary hikes or inflation adjustments.
This calculator is an advanced tool for investors who want to achieve long-term financial goals faster, without straining their monthly budget in the early years.
What is a Step Up SIP?
A Step-Up SIP (also known as a Top-Up SIP) is a type of systematic investment plan where the monthly contribution increases by a certain percentage each year. For example:
- You start with ₹10,000 per month.
- Set an annual step-up rate of 10%.
- Next year, your SIP increases to ₹11,000 per month, then ₹12,100 in the third year, and so on.
This method ensures your investments keep pace with rising income and inflation, while also accelerating your wealth creation journey.
How to Use FinMinutes’ Step Up SIP Calculator
Our Step-Up SIP Calculator uses advanced mathematical formulas to project your investment growth. It compares:
- Regular SIP (fixed monthly amount)
- Step-Up SIP (increasing monthly amount each year)
By entering your initial investment, duration, expected returns, and step-up percentage, you can see:
- Total invested amount
- Expected returns
- Final corpus value
- Percentage returns
- CAGR (Compounded Annual Growth Rate)
You also get a comparison chart between regular SIP and step-up SIP, so you can instantly visualize the advantage.
Formula & How the Calculator Works
The formula for a Regular SIP Future Value is:
Where:
- FV = Future Value
- P = Monthly SIP Amount
- r = Monthly Rate of Return (Annual Rate ÷ 12)
- n = Total Months
For Step-Up SIP, the formula becomes iterative, as the SIP amount changes each year:
Where:
- s = Annual Step-Up Percentage
- t = Number of Years
The calculator applies this formula year by year, ensuring accurate projections.
Step Up SIP Calculator Example
Example A: Regular SIP
Let’s assume:
- Monthly SIP: ₹10,000
- Duration: 15 years
- Expected Return: 12% annually
- Step-Up Rate: 10% per year
👉 Regular SIP Corpus ≈ ₹50.9 Lakhs
👉 Step-Up SIP Corpus ≈ ₹93.6 Lakhs
💡 With the step-up feature, your wealth grows ~84% higher than a fixed SIP.
Features of Our Step Up SIP Calculator
- ✅ Free to use → No registration, unlimited calculations.
- 🎯 Compare instantly → Regular SIP vs Step-Up SIP.
- 📊 Visual charts → Donut chart for invested vs returns, line chart for yearly growth.
- 📈 CAGR & % return → See both overall returns and annualized growth.
- 💡 Highlight benefit → How much more you earn with Step-Up SIP.
- 📱 Mobile-friendly → Works smoothly on desktop and mobile.
Benefits of Using Step Up SIP
- Aligns with salary growth – increase your SIP as your income grows.
- Beats inflation – ensures your money is working harder every year.
- Achieve goals faster – bigger corpus for retirement, education, or house purchase.
- Disciplined investing – automates the habit of increasing savings.
- Compounding advantage – small increases early on have a big long-term impact.
Who Should Use Step-Up SIP?
• Salaried employees expecting salary growth
• Young investors with growing income
• Investors planning long-term goals
• Anyone wanting to gradually increase investments
Step Up SIP Calculator FAQ
What is a Step-Up SIP?
A Step-Up SIP is a Systematic Investment Plan where your monthly investment increases by a fixed percentage every year.
Is a step-up SIP better than a regular SIP?
Step-up SIP generally builds a larger corpus if you can increase contributions. Regular SIPs offer steady savings.
How do you calculate step-up SIP returns?
The calculator compounds each monthly contribution and increases the monthly SIP once a year by the step-up percentage.
Does the calculator include taxes and fees?
No, results are pre-tax and do not include capital gains tax or fund expenses.
What is CAGR, and why is it different for step-up SIP?
CAGR is an approximation for SIPs; for an accurate annualised return, use XIRR.
Can I use this calculator for any mutual fund?
Yes, you can input an expected return suitable for equity, hybrid, or debt funds.
How often should I increase my SIP?
Most step-up SIPs increase yearly. Choose a step-up percentage that matches your salary growth.
What is the difference between Regular SIP and Step-Up SIP?
A regular SIP invests a fixed monthly amount, while a step-up SIP increases the monthly amount every year by a fixed percentage.
What is a suitable step-up rate?
A 5–15% annual step-up is common, depending on salary growth and financial goals.
Conclusion
The Step-Up SIP Calculator is an essential tool for smart investors who want to maximize long-term wealth creation. By gradually increasing your SIP amount every year, you can leverage both rising income and the power of compounding.
Use this calculator regularly to plan your investments and track whether you are on course to achieve your financial goals.