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Knowledge Base

Step-Up SIP

Each year: SIP(n) = SIP(1) × (1 + stepup%)^(n-1)
A step-up SIP increases your monthly investment by a fixed percentage every year.
Aligns with salary increments — as you earn more, you invest more automatically.
A 10% annual step-up on ₹10,000 SIP at 12% for 20 years gives ₹1.5 Cr vs ₹1 Cr without step-up.
Most AMCs and platforms allow auto step-up SIP registration.
Ideal for young professionals expecting regular salary growth.
Pro Tip
Set your step-up percentage slightly below your expected raise — e.g., if you expect 15% raises, step-up by 10%.

Step-Up SIP - Complete Guide

Everything you need to know about Step-Up SIP and how to optimize your financial strategy.

Understanding the Formula

The core calculation is based on:

Each year: SIP(n) = SIP(1) × (1 + stepup%)^(n-1)

Key Concepts & Rules

  • A step-up SIP increases your monthly investment by a fixed percentage every year.
  • Aligns with salary increments — as you earn more, you invest more automatically.
  • A 10% annual step-up on ₹10,000 SIP at 12% for 20 years gives ₹1.5 Cr vs ₹1 Cr without step-up.
  • Most AMCs and platforms allow auto step-up SIP registration.
  • Ideal for young professionals expecting regular salary growth.

Expert Strategy

Set your step-up percentage slightly below your expected raise — e.g., if you expect 15% raises, step-up by 10%.

How to use this Calculator?

1. Enter your specific values in the input fields above.
2. The calculator will render instant results as you type.
3. Check the breakdown table for year-by-year projections.
4. Adjust the inputs to see how different scenarios impact the final result.