Step-up SIP Calculator
Calculate maturity of SIPs where you increase the monthly amount every year by a set percentage. Free, privacy-first — inputs never leave your browser.
Investment Details
Results
Maturity Value
₹99,91,479
Invested
₹24,00,000
Gains
₹75,91,479
Multiplier
4.2×
For estimation only. Not professional financial, tax, or legal advice. Consult a qualified advisor before making decisions. Full disclaimer.
Why step-up SIP beats flat SIP
A 10% annual step-up on a ₹10,000 SIP for 20 years at 12% return grows to ₹1.55 crore vs ₹1 crore for a flat SIP — 55% more. The reason: each year's higher contribution compounds for all remaining years.
Common questions about Step-up SIP
What is a step-up SIP?+
A step-up (or top-up) SIP increases your monthly SIP amount automatically each year by a fixed percentage or absolute amount. Common setup: 10% annual step-up. Example: start with ₹10,000/month, year 2 becomes ₹11,000, year 3 ₹12,100, and so on. Mirrors annual salary hikes so your investing grows with income without manual adjustments.
How much more wealth does step-up SIP create?+
Substantial. A flat ₹10,000/month SIP for 20 years at 12% returns creates ~₹1 crore. A 10% step-up SIP over the same period creates ~₹1.55 crore — 55% more with the same starting amount. Over 25 years, the gap widens to 80%+. The "secret" is that later-year contributions, though discounted for compounding time, are larger so add meaningful corpus.
What step-up percentage should I choose?+
Match your expected annual salary growth. For salaried employees: 8%-10% is realistic. For high-growth careers (tech, finance) early on: 12%-15%. For self-employed: use 3-year average income growth. Going too aggressive (20%+) risks breaking the SIP if cash flow tightens — better to maintain a sustainable step-up than pause a stretched one.
Can I pause or reduce the step-up in a bad year?+
Yes. Most AMCs let you modify the step-up % or skip a year online. Job loss, medical emergency, home purchase, or a child birth are legitimate reasons to pause. Resume at the next opportunity — missing one step-up year reduces 20-year corpus by ~3-5%, not catastrophic. Don't stop the base SIP even if you pause the step-up.
Is step-up SIP better than starting a new SIP?+
Mathematically equivalent, but step-up is operationally simpler. New SIPs add folio tracking overhead, may attract exit-load on redemption, and require separate NACH mandates. A single step-up mandate on one scheme auto-scales without new paperwork. For tax-efficiency, route the incremental amount through the existing scheme.
How is step-up SIP taxed?+
Same as regular SIP — tax is based on holding period per unit, not on the SIP structure. Each installment starts its own 12-month clock for LTCG qualification on equity funds. Redemption follows FIFO: oldest units sold first. In year 11 of a 10-year SIP, early units are long-term (12.5% on gains above ₹1.25L/year), latest units short-term (20%).