Step-up SIP Calculator — Annual Increase, Year-by-Year
A SIP that grows with your salary. Enter starting SIP, annual step-up %, return and duration. Compare the corpus to a flat SIP and see how compounding plus contribution growth stack up.
Corpus growth — step-up vs flat SIP
Year-by-year breakdown
| Year | Monthly | This-year invest | Cum. invested | Step-up corpus | Flat corpus |
|---|---|---|---|---|---|
| 1 | ₹10,000 | ₹1.2 L | ₹1.2 L | ₹1.28 L | ₹1.28 L |
| 2 | ₹11,000 | ₹1.32 L | ₹2.52 L | ₹2.85 L | ₹2.72 L |
| 3 | ₹12,100 | ₹1.45 L | ₹3.97 L | ₹4.76 L | ₹4.35 L |
| 4 | ₹13,310 | ₹1.6 L | ₹5.57 L | ₹7.07 L | ₹6.18 L |
| 5 | ₹14,641 | ₹1.76 L | ₹7.33 L | ₹9.85 L | ₹8.25 L |
| 6 | ₹16,105 | ₹1.93 L | ₹9.26 L | ₹13.16 L | ₹10.58 L |
| 7 | ₹17,716 | ₹2.13 L | ₹11.38 L | ₹17.1 L | ₹13.2 L |
| 8 | ₹19,487 | ₹2.34 L | ₹13.72 L | ₹21.76 L | ₹16.15 L |
| 9 | ₹21,436 | ₹2.57 L | ₹16.3 L | ₹27.27 L | ₹19.48 L |
| 10 | ₹23,579 | ₹2.83 L | ₹19.12 L | ₹33.74 L | ₹23.23 L |
| 11 | ₹25,937 | ₹3.11 L | ₹22.24 L | ₹41.35 L | ₹27.46 L |
| 12 | ₹28,531 | ₹3.42 L | ₹25.66 L | ₹50.24 L | ₹32.23 L |
| 13 | ₹31,384 | ₹3.77 L | ₹29.43 L | ₹60.64 L | ₹37.59 L |
| 14 | ₹34,523 | ₹4.14 L | ₹33.57 L | ₹72.75 L | ₹43.64 L |
| 15 | ₹37,975 | ₹4.56 L | ₹38.13 L | ₹86.84 L | ₹50.46 L |
| 16 | ₹41,772 | ₹5.01 L | ₹43.14 L | ₹1.03 Cr | ₹58.14 L |
| 17 | ₹45,950 | ₹5.51 L | ₹48.65 L | ₹1.22 Cr | ₹66.79 L |
| 18 | ₹50,545 | ₹6.07 L | ₹54.72 L | ₹1.44 Cr | ₹76.54 L |
| 19 | ₹55,599 | ₹6.67 L | ₹61.39 L | ₹1.7 Cr | ₹87.53 L |
| 20 | ₹61,159 | ₹7.34 L | ₹68.73 L | ₹1.99 Cr | ₹99.91 L |
About this tool
Most Indian SIP calculators model a flat monthly amount — fine for year 1, useless for the next 19. Real investors get raises, switch jobs, and want their savings rate to keep up. A step-up SIP raises the monthly contribution by a fixed percentage every year. The math is simple but the corpus difference is dramatic: starting at ₹10K/month with 10% annual step-up over 25 years at 12% returns lands you at roughly ₹3 crore versus ~₹1.7 crore for a flat ₹10K/month SIP — a 75% improvement.
This calculator runs the standard SIP future-value formula year-by-year, applying the step-up at the start of each year. Year n's monthly amount is M₀ × (1 + s)^(n−1). Each year's 12 contributions are summed using the SIP future-value formula FV = M × [((1+i)^N − 1) / i] × (1+i) then compounded forward at the annual return rate for all remaining years. The flat-SIP comparison uses the same starting amount but no step-up, so you see the precise rupee gap.
Returns are pre-tax. For equity mutual funds held over 1 year, LTCG is currently 12.5% on gains above ₹1.25L per year. Debt funds are slab-taxed since April 2023. The calculator does not model expense ratio explicitly — assume your input return is already net of TER.
How to calculate a step-up SIP (5 steps)
- Enter starting monthly SIP. The amount you'll invest in month 1. The calculator will raise this by your step-up % at the start of every following year.
- Set the annual step-up. Default 10%. Match your expected annual salary growth. Try 5%, 10% and 15% to see how sensitive the final corpus is.
- Enter expected return. Annual CAGR you expect from the fund. 12% is a common assumption for diversified equity over long holding periods. Try 10% and 15% to bracket your estimate.
- Set the investment duration. Number of years you'll keep investing. Step-up SIP's advantage compounds with duration — over 25-30 years, the gap vs flat SIP becomes massive.
- Read the comparison. See total invested, future value, and wealth gain for both step-up and flat SIPs. The line chart shows corpus growth year by year for both. The year-wise table breaks down each year's contribution and end-of-year corpus.
Frequently asked questions
+−Why step-up SIP?
Your salary grows ~8-12% a year. A flat SIP doesn't — so as a percentage of your income, you're actually saving less every year. A step-up SIP raises the monthly investment by a fixed % each year, keeping your savings rate constant or growing. Over 20-25 years, a 10% annual step-up typically delivers 50-100% more corpus than the same starting SIP held flat. Try the calculator: even 5% step-up makes a measurable difference.
+−What's a good step-up percentage?
Match your expected salary growth: 8-10% is the sensible default for salaried professionals in India. If you're early-career and switching jobs every 2-3 years, 12-15% is realistic. Conservative: 5%. Aggressive (founders, sales): 15-20%. The key is consistency — even 5% compounded over 20 years is meaningful. The calculator shows the gap vs flat SIP so you can pick a step-up you'll actually stick to.
+−Can I decrease the step-up later?
Yes. Step-up is just a personal commitment — there's no contract with the AMC. Most platforms (Zerodha Coin, Groww, ET Money, MFCentral) let you modify SIP amount or pause anytime. Plan a high step-up and lower it later if life changes (job loss, kids, parents' medical) is much better than starting low and forgetting to raise it. The compounding penalty for under-saving early is severe.
+−What happens if I miss a year of step-up?
The corpus impact is real but small if it's a one-off. Skipping one 10% step-up at year 5 of a 20-year SIP costs roughly 1-2% of final corpus. Skipping every other year roughly halves the step-up benefit. The calculator assumes continuous step-up; manually subtract one year's extra contributions × growth rate to model a missed year.
+−Is step-up SIP better than lump sum investing?
Different problems. Lump sum wins mathematically when the market is at a long-term low and you have the cash, because money invested earlier compounds longer. SIP — flat or step-up — is for people without a lump sum, or who want rupee-cost averaging to dampen timing risk. For most salaried Indians, step-up SIP fits actual cash flow (rising income, no big lump sum) better than lump sum or flat SIP.
+−How much SIP do I need for ₹1 crore?
At 12% return: ₹10K/month flat SIP for 20 years gets you to ~₹1Cr. With 10% step-up, you can start at ~₹6,500/month and still hit ₹1Cr in 20 years (your last-year SIP would be ~₹40K/month). Cut the duration to 15 years and you need ~₹20K/month flat or ~₹13K/month with 10% step-up. Use the calculator to back-solve any goal.
+−Are step-up SIP returns shown here pre-tax or post-tax?
Pre-tax. Equity mutual fund LTCG (held over 1 year) is currently 12.5% above ₹1.25L of gains per year. Debt funds are taxed at slab rate as of April 2023. The calculator returns the gross figure. For a 30% slab investor, expect 1-2% lower realized CAGR than the input return rate after tax drag at withdrawal.
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