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Step up SIP calculator: raise the SIP every year.
Raise the instalment once a year by a fixed percentage and compare the result with a SIP that never changes.
- Formula shown
- Free, nothing stored
- Share your result as a link
- Step up
- Flat
01How it works
In plain words.
In year one the SIP is the starting amount. Every year after that it rises by the step up percentage: Rs 10,000, then Rs 11,000, then Rs 12,100 at 10%. Each month the balance grows by the monthly rate and the month’s instalment is added. The flat SIP runs the same loop without the rise.
The formula
SIP in year k = SIP x (1 + step)^(k - 1)Every month: balance = balance x (1 + i) + SIP of that yeari = (1 + r)^(1/12) - 102Worked example
The default numbers, by hand.
Rs 10,000 a month, rising 10% a year, 15 years at 12%: the step up SIP ends near Rs 82 lakh against about Rs 47.1 lakh for the flat SIP; it also puts in more money, about Rs 38.1 lakh against Rs 18 lakh.
| Input | Value |
|---|---|
| Starting monthly SIP | ₹10,000 |
| Yearly step up | 10% |
| Existing corpus | ₹0 |
| Expected return a year | 12% |
| Period | 15 years |
| Result | Value |
|---|---|
| With a 10% step up | ₹82.0 L |
| Flat SIP | ₹47.1 L |
| Extra from the step up | ₹34.8 L |
| Invested with the step up | ₹38.1 L |
| Invested flat | ₹18.0 L |
03Key concepts
What to know before you use it.
Why step up
Incomes in India often rise every year. A SIP that stays flat becomes a smaller share of income over time. A step up keeps the share steadier, and every extra rupee compounds for the years left.
Compare like with like
A step up SIP invests more money in total, so part of the extra value is simply extra money put in. The cards show both the extra value and the money invested each way.
Good to know
- A step up linked to your expected pay rise keeps the SIP at a similar share of income.
- Even a 5% yearly step up changes the result noticeably over 15 years or more.
- Many plans let you set the step up once; it then applies every year without a new mandate.
04Assumptions
What the calculator assumes.
- The rise happens once a year, at the start of each year.
- One constant return; instalments at month end.
- No tax or costs deducted.
05Questions
Asked about the Step up SIP calculator.
What is a step up SIP?
A SIP whose monthly amount rises by a fixed percentage, or a fixed rupee amount, once a year. This calculator uses a percentage.
Is a step up SIP better than a flat SIP?
It ends with more money because it invests more money. Whether that suits you depends on your income and other goals; the calculator shows the trade off in rupees.
How is the final value calculated?
Month by month: the balance grows by the monthly rate and that year’s instalment is added. The instalment rises by the step up at the start of each year.
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06Keep going
Learn the idea, see it applied.
More returns and compounding calculators
Education only, not investment advice. RupeeCase is a technology platform operated by QC Alpha Technologies Pvt Ltd; it is not a fund, a PMS or a SEBI registered investment adviser. Model returns are back tested and not a promise of future returns. Figures carry the date they were checked.