What a step-up SIP is
Also called a top-up SIP. You choose a starting amount and a yearly increase, say 10%. In year one you invest ₹10,000 a month, in year two ₹11,000, in year three ₹12,100, and so on. Most fund houses let you set this up once so it happens automatically on the SIP's anniversary.
It matches how most salaries behave. You commit to an amount that is comfortable today and let it grow with your income, instead of waiting until you "can afford" the bigger number.
How to use the calculator
- Starting monthly SIP: what you can invest comfortably now.
- Yearly step-up: 5 to 10% is realistic for most salaried investors; if your increments are higher, you can go higher.
- Expected return and period.
The chart compares your step-up SIP with a flat SIP of the same starting amount. The table shows the SIP amount for every year, so you can see what you are signing up for in year 15.
Worked example: ₹10,000 for 20 years at 12%
| Yearly step-up | You invest in total | Value after 20 years | SIP in year 20 |
|---|---|---|---|
| None (flat) | ₹24.0 lakh | ₹99.9 lakh | ₹10,000 |
| 5% | ₹39.7 lakh | ₹1.37 crore | ₹25,270 |
| 10% | ₹68.7 lakh | ₹1.99 crore | ₹61,159 |
| 15% | ₹1.23 crore | ₹3.03 crore | ₹1,42,318 |
The 10% row doubles the end result. Be honest with yourself about the last column, though. A 15% step-up means investing ₹1.4 lakh a month in year 20. Choose a rate your income can actually keep up with.
Step-up or a bigger SIP from day one?
If you can afford ₹20,000 today, start at ₹20,000. Money invested earlier always compounds longer. A step-up is for when the bigger number isn't possible yet. The target SIP calculator shows how much lower the starting SIP can be for the same goal: for ₹1 crore in 15 years at 12%, a flat SIP is ₹19,819, while with a 10% step-up you start at ₹11,516.
How the calculation works
Each month's instalment compounds at the monthly rate (yearly return ÷ 12) from the day it is invested. After every 12 instalments, the monthly amount is multiplied by (1 + step-up %). The final value is the sum of every instalment's grown value.
Questions people ask
What is a good step-up percentage for a SIP?
Match it to your expected salary increase. For most salaried investors, 5 to 10% a year is sustainable. Pick the rate you can keep for the whole period, not the one that gives the biggest number.
Can I set up a step-up SIP on an existing SIP?
Usually you register a new SIP with the top-up option, or add a separate SIP each year. Your distributor or the fund house app can set it up.
Is a step-up SIP better than a normal SIP?
It builds a much bigger corpus from the same starting amount because you invest more over time. If you can already afford the higher amount, a bigger flat SIP from day one does even better.
Does a step-up SIP cost anything extra?
No. There is no fee for the step-up feature. You simply invest more each year.
Can I stop the step-up later?
Yes. You can cancel the top-up and continue at the current amount, or stop the SIP altogether.