Step-up SIP Calculator

Initial Monthly SIP Amount (₹)

₹500 ₹1L

Start with as low as ₹500 per month

Annual Step-up Rate (%)

0% 50%

Typical increment: 5-15% aligned with salary hikes

Expected Annual Return (%)

1% 30%

Historical equity returns: 12-15% p.a.

Investment Period (Years)

1 Year 40 Years

Longer periods benefit from compounding

Expected Inflation Rate (%)

0% 15%

Average inflation in India: 5-7%

Your Step-up SIP Results

₹87,54,291 Total Corpus with Step-up

+₹25,42,108 Additional benefit over Regular SIP

Total Investment

₹24,63,788

Total Gains

₹62,90,503

Regular SIP Corpus

₹62,12,183

Return on Investment

255.3%

Additional Gain %

40.9%

Inflation-Adjusted Value

₹36,78,159

SIP Amount Progression

Quick Presets

What is Step-up SIP?

Step-up SIP is an advanced systematic investment plan where you increase your monthly investment amount by a fixed percentage annually. This strategy aligns your investments with salary increments and helps beat inflation while accelerating wealth creation.

How Step-up SIP Works

Start with Base Amount

Begin with a comfortable monthly SIP amount, say ₹5,000

Annual Increment

Increase SIP by fixed percentage (e.g., 10%) every year

Compound Growth

Higher investments + returns on returns = accelerated growth

Step-up SIP vs Regular SIP

Parameter	Regular SIP	Step-up SIP	Benefit
Monthly Amount	Fixed	Increases Annually	Aligns with income growth
Total Investment	Lower	Higher	More capital deployed
Final Corpus	Standard	30-50% Higher	Significant wealth gain
Inflation Impact	Not addressed	Countered	Real wealth growth

Ideal Step-up Rates

Conservative (5-7%): For stable income earners, government employees
Moderate (8-12%): For private sector employees with regular increments
Aggressive (15-20%): For entrepreneurs, high-growth careers
Super Aggressive (20%+): For young professionals with rapid career growth

Step-up SIP Strategy Tips

Start Early

Begin with smaller amounts and let step-up do the heavy lifting over time

Match Salary Hikes

Align step-up percentage with expected annual salary increments

Review Annually

Adjust step-up rate based on actual income growth and goals

Automate Process

Set up auto-debit with annual increment instructions

Tax Benefits

ELSS funds qualify for ₹1.5 lakh deduction under Section 80C
Long-term capital gains up to ₹1 lakh are tax-free
Gains above ₹1 lakh taxed at 10% without indexation
No tax on unrealized gains during accumulation phase
SIP installments treated separately for LTCG calculation

Step-up SIP Calculator - Frequently Asked Questions

What is the ideal step-up percentage?

The ideal step-up percentage should match your expected annual salary increment. Most professionals use 10-15% step-up, which aligns with typical salary hikes in India.

Can I change my step-up rate later?

Yes, you can modify your step-up rate anytime. Most mutual fund platforms allow you to adjust the annual increment percentage based on your changing financial situation.

Is step-up SIP better than regular SIP?

Step-up SIP typically generates 30-50% higher corpus than regular SIP over long periods. It's especially beneficial for young investors whose income is expected to grow.

What if I can't increase SIP some year?

You can skip the increment for that year and continue with the same amount. Resume step-up when your financial situation improves. Flexibility is a key advantage.

Which funds are best for step-up SIP?

Equity funds, especially large-cap and flexi-cap funds, work best for step-up SIP due to their long-term growth potential. ELSS funds add tax benefits too.

How much more corpus with step-up?

With 10% annual step-up over 20 years, your corpus can be 40-50% higher than regular SIP. The exact difference depends on returns and step-up rate.

Step-up SIP Calculator - Calculate SIP with Annual Increment