SIP Step-Up Calculator
Calculate returns from SIP with annual step-up (increase) to build wealth faster
Step-up SIP can significantly boost long-term wealth
SIP Details
Starting monthly investment amount
Yearly increase in SIP amount (typically 5-15%)
Expected return rate (10-15% for equity funds)
Investment duration
Total Investment
₹9,56,245
Invested over 10 years
Expected Returns
₹16,87,163
Final corpus value
Wealth Gained
₹7,30,918
Profit from investment
Step-Up Advantage
Without Step-Up (Constant SIP)
Investment:₹6,00,000
Returns:₹11,61,695
Wealth Gained:₹5,61,695
With 10% Step-Up
Extra Investment:₹3,56,245
Extra Returns:₹5,25,468
Additional Wealth:₹1,69,222
Year-by-Year Breakdown
| Year | Monthly SIP | Yearly Investment | Total Invested | Portfolio Value |
|---|---|---|---|---|
| 1 | ₹5,000 | ₹60,000 | ₹60,000 | ₹64,047 |
| 2 | ₹5,500 | ₹66,000 | ₹1,26,000 | ₹1,42,621 |
| 3 | ₹6,050 | ₹72,600 | ₹1,98,600 | ₹2,38,205 |
| 4 | ₹6,655 | ₹79,860 | ₹2,78,460 | ₹3,53,661 |
| 5 | ₹7,321 | ₹87,846 | ₹3,66,306 | ₹4,92,285 |
| 6 | ₹8,053 | ₹96,631 | ₹4,62,937 | ₹6,57,867 |
| 7 | ₹8,858 | ₹1,06,294 | ₹5,69,230 | ₹8,54,764 |
| 8 | ₹9,744 | ₹1,16,923 | ₹6,86,153 | ₹10,87,978 |
| 9 | ₹10,718 | ₹1,28,615 | ₹8,14,769 | ₹13,63,250 |
| 10 | ₹11,790 | ₹1,41,477 | ₹9,56,245 | ₹16,87,163 |
Investment vs Returns Growth
Year 1₹64,047
Year 3₹2,38,205
Year 5₹4,92,285
Year 7₹8,54,764
Year 9₹13,63,250
Year 10₹16,87,163
Investment
Total Returns
Why Step-Up SIP Works
- •Salary Growth Alignment: As your income increases, your SIP increases too
- •Faster Wealth Creation: Compounding works better with larger investments
- •Disciplined Savings: Forces you to save more as you earn more
- •Inflation Beating: Annual step-up typically matches or beats inflation
Understanding SIP Step-Up
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What is Step-Up SIP?
Step-up SIP allows you to increase your monthly investment by a fixed percentage every year. For example, if you start with ₹5,000/month with 10% step-up, it becomes ₹5,500 in Year 2, ₹6,050 in Year 3, and so on.
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Recommended Step-Up Rate
5-10%: Conservative, suitable for stable income
10-15%: Moderate, matches typical salary hikes
15%+: Aggressive, for high-growth careers
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Who Should Use It?
- ✓ Salaried individuals with annual increments
- ✓ Young professionals in growth phase
- ✓ Long-term wealth builders
- ✓ Those planning for retirement
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Key Benefits
- ✓ Builds larger corpus over time
- ✓ Aligns with income growth
- ✓ Beats inflation automatically
- ✓ Disciplined wealth creation
Example: Power of Step-Up SIP
Scenario A: Constant SIP
₹5,000/month for 20 years @ 12% p.a.
Investment: ₹12L | Returns: ₹50L
Scenario B: 10% Step-Up SIP
₹5,000/month with 10% annual increase
Investment: ₹34L | Returns: ₹1.52 Crore
Extra: ₹1.02 Crore! 🚀