Step-up SIP Calculator — SIP with annual increment
See how much more wealth you build when your SIP grows every year. Perfect for matching salary hikes. Compare with flat SIP instantly.
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About the Step-up SIP Calculator
A step-up SIP is a SIP that grows with your income. If your starting SIP is ₹10,000 and you step up 10% annually, year 2 becomes ₹11,000, year 3 ₹12,100, year 5 ₹14,641, and year 10 ₹23,579. Most Indian AMCs (HDFC, SBI, Axis, Mirae, Nippon, Parag Parikh, ICICI Prudential, Kotak, Aditya Birla) support it natively — you set the percentage hike and the date once, and the auto-debit grows automatically every year.
The math: each year's monthly investment compounds for the remaining months at your expected return rate. This calculator sums the future value of every monthly contribution separately, so the effective return on later contributions is lower (less time to compound) but the dollar contribution is much larger. The result is that the back half of a step-up SIP is doing most of the heavy lifting in absolute rupees.
Why step-up SIPs are mathematically superior to flat SIPs for salaried Indians: salary inflation in India runs 7–10% for most professionals, but flat SIPs stay frozen, meaning your savings rate as a percentage of income drops every year. A 10% step-up just keeps you investing the same fraction of income — it is not aggressive saving, it is staying still in real terms.
Concrete comparison over 25 years at 12% return: a flat ₹10,000/month SIP yields ₹1.9 crore. A 10% annual step-up starting at the same ₹10,000 yields ₹3.4 crore (roughly 80% more). At 5% step-up, ₹2.5 crore. At 15% step-up, ₹4.8 crore. Total contributions are higher in the step-up case, but the gain per rupee invested is also slightly better because money compounds longer in absolute terms.
The earlier you start stepping up, the larger your final corpus — which is why step-up SIPs are especially powerful for investors in their 20s and 30s with strong salary growth trajectories. Practical tip: align the step-up date with your appraisal cycle (April or July for most Indian companies). That way, the SIP increase comes out of fresh raise, not from existing budget — much easier to sustain psychologically.