Step-Up SIP Calculator

A step-up SIP (also called a top-up SIP) is a monthly SIP that rises on a schedule, usually once a year, by a percentage or a fixed amount. Each rise buys more units, and those units have years left to compound, so a modest step-up can add a lot to the final value.

The formula

monthly return i = yearly return ÷ 12 ÷ 100
one year of SIP = P × ((1 + i)^12 − 1) ÷ i × (1 + i)
it then grows × (1 + i)^(months left)
next year's SIP = P × (1 + step-up %), or P + step-up amount
maturity value = all the years added up + lump sum × (1 + i)^months

The last (1 + i) in the second line is there because you pay at the start of each month, which is how most fund houses work it out (and the same as our SIP calculator, so a 0% step-up gives the same answer). If you pay at the end of the month, leave that factor out. With "Every 6 months", the SIP rises by the step-up every 6 months instead of every 12. A cap stops the SIP rising once it reaches the highest amount you set.

Worked example

₹5,000 a month, rising 10% a year, at 12% a year for 10 years. The monthly return is 12 ÷ 12 = 1%, so one year of ₹1 a month at the start of each month grows to (1.01¹² − 1) ÷ 0.01 × 1.01 = 12.809328.

• Year 1: ₹5,000 × 12.809328 = ₹64,046.64 by the end of the year. It then grows for 108 more months: × 1.01¹⁰⁸ (2.928926) = ₹1,87,587.86.
• Year 2: ₹5,500 a month, and so on, rising 10% each year.
• Year 10: ₹5,000 × 1.1⁹ = ₹11,789.74 a month, which grows to ₹11,789.74 × 12.809328 = ₹1,51,018.63 with no time left.

Adding up all 10 years gives a maturity value of ₹16,87,163. You put in ₹9,56,245 (₹60,000 × (1.1¹⁰ − 1) ÷ 0.1), so about ₹7,30,918 comes from returns. A flat ₹5,000 SIP would reach ₹11,61,695 on ₹6,00,000 invested, so stepping up adds ₹5,25,468 for ₹3,56,245 more put in. With 6% inflation, ₹16,87,163 in 10 years is worth about ₹9,42,103 in today's money (÷ 1.06¹⁰ = 1.790848).

Starting SIP for a goal

With a percentage step-up, the end value is a straight multiple of the starting SIP. At 12% with a 10% yearly step-up over 15 years, each ₹1 of starting SIP grows to ₹868.38, so ₹1 crore needs 1,00,00,000 ÷ 868.38 = ₹11,516 a month to start, rising to about ₹43,731 in year 15. A flat SIP would need ₹19,819 a month all the way. With a cap, the calculator searches for the starting amount instead.

Notes

• Investing works the same way everywhere; the currency only changes the symbol. Indian lakh and crore words show for ₹.
• Tax is not included. For tax on mutual fund gains in India, use the Advanced options on the SIP calculator.
• The year-by-year table shows the monthly SIP at the start of each year (and after the mid-year rise with "Every 6 months").

Returns from equity funds are not guaranteed and vary from year to year. This calculator assumes a steady average return, so treat the results as illustrations, not promises. It is not investment advice.