A step-up (or top-up) SIP increases your monthly investment by a fixed percentage every year, usually in line with your salary hikes. It's one of the simplest ways to reach a big goal without straining your budget today.
How a step-up SIP is calculated
Year 1 SIP = P; Year 2 SIP = P × (1 + s); Year k SIP = P × (1 + s)^(k − 1)s = yearly step-up %, each month's instalment grows at r = yearly return ÷ 12 ÷ 100Value = sum of every instalment grown until the endWorked example: flat SIP vs step-up
| ₹10,000 a month, 15 years, 12% return | Flat SIP | 10% yearly step-up |
|---|---|---|
| Total invested | ₹18.0 lakh | ₹38.1 lakh |
| Estimated value | ₹50.5 lakh | ₹86.8 lakh |
Raising the SIP by 10% a year means the monthly amount is about ₹38,000 by year 15, which feels manageable if your salary has grown too. The final value is over 70% higher.
Mutual fund returns aren't guaranteed. Results use the rate you enter as if it were earned every year; real returns go up and down.
Setting it up
Most fund houses and investing apps offer an automatic top-up option when you start a SIP, either a percentage or a fixed rupee increase every year. If yours doesn't, raise the SIP manually after each appraisal. Use the salary hike calculator to see how much more you'll take home.
How to use this calculator
- Enter your starting monthly SIP.
- Set the yearly increase.
- Enter the return and time.
FAQs
How much should I step up?
Many people match their yearly pay rise, often 5–10%.
Results are estimates and aren't financial advice. For decisions about your own money, check with a qualified adviser. Spotted a mistake? Tell us.