Step-up SIP Calculator
A step-up (or top-up) SIP increases your monthly investment by a fixed percentage every year, typically matching salary increments, so you invest more as your income grows rather than a flat amount for the whole period.
Simulated month by month: each month the balance grows at the monthly return rate and the current instalment is added; the instalment itself increases by the step-up percentage at the start of every new year.
How to use this calculator
Enter your starting monthly investment, the percentage you'll increase it by each year, an assumed annual return rate, and the investment period. The calculator simulates the SIP month by month with the increasing instalment.
What this doesn't account for
This assumes the step-up happens exactly once a year, every year, without fail, and that the return rate is constant. It doesn't account for a fund's expense ratio or tax on withdrawal.
Frequently asked questions
How is this different from the regular SIP calculator?
The regular SIP calculator assumes a fixed monthly amount for the whole period. This one increases the monthly amount by a set percentage every year, which usually results in a larger corpus for the same starting amount.
What step-up percentage should I use?
A common approach is to match your expected annual salary increment, but this calculator doesn't recommend a specific figure; use one you can realistically sustain.
Does the step-up compound on itself?
Yes. Each year's instalment is the previous year's instalment multiplied by (1 + step-up rate), so the step-up itself compounds over a long period.
Can I model a step-up that happens less often than annually?
Not with this calculator; it assumes exactly one step-up per year. A less frequent step-up would produce a smaller corpus than shown here.
Is a step-up SIP always better than a flat SIP?
It generally builds a larger corpus for the same starting amount since later years contribute more, but it also requires committing to larger outflows over time, which is a real affordability question, not just a math one.
This is a generic financial calculation, not investment, loan or tax advice specific to you. BrokerLens is not a SEBI-registered investment adviser.