How to use the Step-Up SIP Calculator
- 1. Enter your starting SIPType what you can invest each month today.
- 2. Set your step-upPick a yearly raise, as a percent or a fixed rupee amount.
- 3. See your corpusCompare the result with a SIP that never changes.
How the calculation works
Assumption used here: monthly compounding at (1 + r/12), with each SIP paid at the start of the month (the annuity-due convention). Each year's instalment stays the same for 12 months, then steps up.
So the tool runs month by month: add the SIP, then grow the balance by r/12. In year 1 that is ₹10,000 a month. In year 2 it is ₹11,000, then ₹12,100, and so on.
Worked example: start at ₹10,000 a month, step up 10% a year, for 15 years at an assumed 12%. You invest ₹38,12,698 and your SIP reaches ₹37,975 a month in the final year. The estimated corpus is ₹86,83,849, of which ₹48,71,152 is gain.
Why step up at all?
Take the same ₹10,000 and never raise it. Over those 15 years, at the same assumed return, you reach ₹50,45,760. The step-up adds about ₹36 lakh more, though you are also investing more of your own money. The point is that a raise of a small amount each year often feels easy, since most of us earn more over time. It also helps your investing keep pace with inflation.
Using the result sensibly
- Match your income. Choose a step-up that you can keep up in a poor year.
- Check your platform. Most fund houses let you set a top-up, but rules differ.
- Test a low return. 12% is an example, not a promise. Markets go up and down.
Got one amount to invest as well? Try the lumpsum calculator. To set a target first, start from the retirement calculator, then return here to see how a step-up could get you there.
Frequently asked questions
Why is my result a bit different from another SIP calculator?
Calculators differ on timing and compounding. This one assumes monthly compounding at (1 + r/12) with payments at the start of the month. Others may use a different method.
Percent or fixed step-up: which is better?
A percent step-up rises with each year's SIP, so it grows faster. A fixed rupee step-up is easier to plan. Try both here.
Is the return guaranteed?
No. Market returns vary. The result is only an estimate at the rate you enter, before tax and costs.
Is the step-up SIP calculator free?
Yes. You enter your name and WhatsApp number once to see your result, and all other Uncodemy tools then open without the form.