Step-up SIP Calculator
What if your SIP grew with your salary every year?
Step-up SIP maturity
₹0
with the annual increase
If you never stepped up
₹0
same start, no increase
Maturity in today's money
₹0
after assumed inflation
Final year's monthly SIP
₹0
Why stepping up matters so much
A flat SIP quietly shrinks in real terms every year. Stepping up by roughly your salary increase keeps the contribution constant in purchasing power — and because the early years compound longest, even a 10% annual step-up typically adds far more than a 10% larger starting amount would.
Match the step-up to your raise, not to a target
The step-up only works if it is sustainable. Tying it to your appraisal cycle — a fixed percentage each year, increased automatically — is what makes it survive contact with real life. A step-up you cancel in year three is worse than a flat SIP you keep.
Most platforms support this natively
A step-up (or "top-up") SIP can be set at the time of registration on most fund platforms, so the increase happens automatically without you re-authorising a mandate each year. If yours does not, an annual calendar reminder does the same job.
Illustration only. Assumes the step-up applies once every twelve months on the anniversary, returns compound monthly at a constant rate, and every instalment is paid on time. Real markets do not deliver a constant return. Figures are pre-tax; equity fund gains above ₹1.25 lakh a year attract 12.5% LTCG. Not investment advice.
Frequently asked questions
What is CAGR and how is it different from average return?
CAGR (Compound Annual Growth Rate) is the single steady annual rate that would take your starting value to your ending value over the period, accounting for compounding. A simple average of yearly returns can be misleading -- a 50% gain followed by a 50% loss averages to 0%, but you'd actually be down 25%. CAGR reflects what actually happened to your money.Read more: Your Retirement Number Ignores the One Cost Growing Twice as Fast
Is SIP better than a lump sum investment?
Neither is universally better -- a SIP (spreading investment across regular installments) reduces the risk of investing everything right before a downturn and suits regular income, while a lump sum captures more time in the market if invested when prices are relatively low. For most people investing from salary, SIP is the practical default; a lump sum windfall is often still better invested promptly rather than staggered indefinitely.Read more: Your “Financial Advisor” Is Probably Just a Salesperson on Commission
How does compounding actually grow money over time?
Compounding means your returns start earning their own returns, not just your original investment. The effect is small in early years and accelerates sharply later -- which is why starting early matters more than almost any other single investing decision, even more than the exact return rate.Read more: SEBI’s SCORES Portal Promises a 21-Day Fix — Here’s What That Timeline Doesn’t Tell You
What's a realistic long-term return to assume for equity investments?
Long-term equity returns vary a great deal by market and period, and past performance never guarantees future results. Most long-term financial plans use a conservative, inflation-aware assumption rather than recent bull-market numbers -- this calculator lets you test your own assumption and see how sensitive the outcome is to it.Read more: Your Retirement Number Ignores the One Cost Growing Twice as Fast
Estimates only, not financial advice. See our Disclaimer.
