Step-up SIP calculator: raise your SIP every year
Most people earn more over time, so raising your SIP each year is natural. This calculator shows how a yearly step-up changes the final amount compared with a flat SIP.
How to use this calculator
- Enter the monthly amount you start with.
- Enter how much you will raise it each year, as a percentage.
- Enter the expected yearly return and the number of years.
- Read the future value and the extra a step-up adds over a flat SIP.
Worked examples
Example 1
Start at ₹10,000 a month, raise it 10% every year for 15 years at 12%.
You enter
| Starting monthly investment | ₹10,000 |
|---|---|
| Increase every year | 10% |
| Expected return (per year) | 12% |
| Years | 15 |
| Inflation (optional) | 6% |
You get
| Future value | ₹86,83,849 |
|---|---|
| Total you invest | ₹38,12,698 |
| Estimated growth | ₹48,71,152 |
| Future value in today's money | ₹36,23,467 |
Example 2
A smaller 5% step-up.
You enter
| Starting monthly investment | ₹10,000 |
|---|---|
| Increase every year | 5% |
| Expected return (per year) | 12% |
| Years | 15 |
| Inflation (optional) | 6% |
You get
| Future value | ₹65,30,752 |
|---|---|
| Total you invest | ₹25,89,428 |
| Estimated growth | ₹39,41,324 |
| Future value in today's money | ₹27,25,055 |
How it works
A 10% step-up means that a ₹10,000 SIP becomes ₹11,000 in year two, ₹12,100 in year three, and so on. Because more money goes in during later years, the total invested and the final value are both higher.
Pick a step-up you can really afford: a plan that is dropped half-way helps nobody.
Formula
The monthly instalment is multiplied by (1 + step-up) at the start of every year; each month balance = (balance + instalment) x (1 + monthly return).
Common questions
How is this different from a normal SIP?
A normal SIP keeps the same amount for the whole period.
Can I step up by a fixed rupee amount?
This tool uses a percentage; a fixed step is similar for small amounts.
Is the return guaranteed?
No.
Learn more
Read the lesson Compounding and the time value of money on pusaram.com for the ideas behind this calculator.
Calculators give estimates for learning and planning. They are not financial, tax, legal or medical advice, and results depend entirely on the numbers you enter. Check rates, limits and rules with an official source or a qualified professional before acting.