Step-up SIP Calculator
Your salary grows every year and your SIP should too. Compare a step-up SIP against a flat one and see what the difference compounds into.
Verdict
$173.5K extra from stepping up
- Step-up corpus
- $377.3K
- Flat SIP corpus
- $203.9K
- Total invested
- $228.8K
- Wealth gained
- $148.6K
Raising a $600 SIP by 10% each year, money you would barely miss as your salary grows.
Corpus growth: step-up vs flat
Year-by-year table
| Year | Step-up corpus | Invested | Flat SIP corpus |
|---|---|---|---|
| 1 | $7,508 | $7,200 | $7,508 |
| 2 | $16,368 | $15,120 | $15,617 |
| 3 | $26,763 | $23,832 | $24,375 |
| 4 | $38,897 | $33,415 | $33,833 |
| 5 | $53,002 | $43,957 | $44,048 |
| 6 | $69,334 | $55,552 | $55,081 |
| 7 | $88,183 | $68,308 | $66,995 |
| 8 | $109,869 | $82,338 | $79,863 |
| 9 | $134,753 | $97,772 | $93,761 |
| 10 | $163,238 | $114,749 | $108,770 |
| 11 | $195,771 | $133,424 | $124,980 |
| 12 | $232,855 | $153,967 | $142,487 |
| 13 | $275,048 | $176,564 | $161,394 |
| 14 | $322,973 | $201,420 | $181,814 |
| 15 | $377,323 | $228,762 | $203,867 |
The raise you never invested
Most people set a SIP once and never touch it. Meanwhile their income grows 8 to 12% a year, and the gap quietly becomes lifestyle spending. A step-up SIP captures part of every increment automatically. The effect is strongest in the later years: because contributions rise every year, far more money is at work in the final decade. A 10% annual step-up typically adds 40 to 60% to the final corpus over 15 years versus a flat SIP.
Assumptions: investments happen at the start of each month, returns compound monthly from an effective annual rate, and the step-up applies once a year. Taxes and expense ratios are not modelled.
FAQ
What is a step-up SIP?
A step-up or top-up SIP automatically increases your monthly investment by a fixed percentage every year, typically matching your salary increment. Most fund platforms let you set this when starting the SIP.
How much step-up percentage should I choose?
A common rule is to match your expected annual salary growth so the SIP never feels heavier: 8 to 10% is typical for salaried professionals. Even 5% compounds into a dramatically larger corpus over 15+ years.
Is a step-up SIP better than starting with a bigger SIP?
If you can afford the bigger SIP today, starting bigger wins, because money invested earlier compounds longer. The step-up is for the realistic case where today's budget is limited but income will grow.
What return should I assume for equity SIPs?
The Nifty 50 total-return index has delivered roughly 12 to 12.5% annually over the last 20 to 25 years, which is why 12% is the default here. Past returns do not guarantee future ones; using 10 to 11% keeps the plan conservative.
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