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Step-Up SIP Calculator

See how increasing your SIP by a fixed percentage every year (top-up SIP) grows your mutual fund corpus.

Total invested
₹19,12,491
Estimated returns
₹14,61,835
Maturity value
₹33,74,326
Extra vs flat SIP
₹10,50,936

Step-by-step working

  1. Year y instalment = 10,000 × (1 + 10/100)^(y−1)
  2. Each instalment compounds monthly at 12/1200 for its remaining months; all are summed.

Mathematical Formula

FV = Σ (k = 0 … n−1) P × (1 + s)^⌊k/12⌋ × (1 + i)^(n − k), where s = annual step-up, i = annual return / 12 / 100, n = months.

Overview & Explanation

A step-up SIP raises the instalment once a year, usually in line with salary increments. Each instalment is compounded individually for the months it stays invested.

How It Works

  • Instalment in year y = starting SIP × (1 + step-up)^(y−1).
  • Each monthly instalment is invested at the start of its month and compounds monthly.
  • Summing every instalment’s future value gives the corpus.

Practical Applications

  • Aligning investments with annual pay hikes.
  • Reaching a goal faster without a large starting SIP.

Example 1: ₹10,000 with 10% yearly step-up, 10 years, 12%

Compare with the flat SIP of the same start amount.

1

Inputs

Starting monthly SIP (₹): 10000 · Annual step-up (%): 10 · Expected return (% p.a.): 12 · Investment period (years): 10

= entered
2

Step 1

Year y instalment = 10,000 × (1 + 10/100)^(y−1)

3

Step 2

Each instalment compounds monthly at 12/1200 for its remaining months; all are summed.

4

Maturity value

Result

= ₹33,74,326

Example 2: ₹5,000 with 15% step-up, 15 years, 12%

A smaller start with an aggressive top-up.

1

Inputs

Starting monthly SIP (₹): 5000 · Annual step-up (%): 15 · Expected return (% p.a.): 12 · Investment period (years): 15

= entered
2

Step 1

Year y instalment = 5,000 × (1 + 15/100)^(y−1)

3

Step 2

Each instalment compounds monthly at 12/1200 for its remaining months; all are summed.

4

Maturity value

Result

= ₹59,17,612

How it's calculated & sources

FV = Σ (k = 0 … n−1) P × (1 + s)^⌊k/12⌋ × (1 + i)^(n − k), where s = annual step-up, i = annual return / 12 / 100, n = months.

Frequently Asked Questions

What is a step-up or top-up SIP?
A facility offered by most AMCs where your SIP instalment automatically increases by a fixed amount or percentage at a set interval, typically yearly.
With 0% step-up, does it match a normal SIP?
Yes. With a 0% step-up the formula reduces exactly to the regular SIP annuity-due formula.
When does the increase apply?
This calculator increases the instalment every 12 months, starting from month 13.
Is the return guaranteed?
No, mutual fund returns are market-linked; the result is an illustration at a constant assumed return.

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