Worked example
Start with ₹10,000 a month, raise it by 10% every year, and invest for 15 years at an assumed 12% a year. The estimated value is ₹86,83,849, from ₹38,12,698 put in.
- Monthly investment
- ₹10,000
- Yearly step-up
- 10%
- Assumed return (per year)
- 12%
- Time period
- 15 years
- Amount invested
- ₹38,12,698
- Estimated value
- ₹86,83,849
| Year | Monthly amount | Invested so far | Estimated value |
|---|---|---|---|
| 1 | ₹10,000 | ₹1,20,000 | ₹1,28,093 |
| 2 | ₹11,000 | ₹2,52,000 | ₹2,85,241 |
| 3 | ₹12,100 | ₹3,97,200 | ₹4,76,410 |
| 4 | ₹13,310 | ₹5,56,920 | ₹7,07,323 |
| 5 | ₹14,641 | ₹7,32,612 | ₹9,84,570 |
| 10 | ₹23,579 | ₹19,12,491 | ₹33,74,326 |
| 15 | ₹37,975 | ₹38,12,698 | ₹86,83,849 |
How to use this calculator
- Enter your monthly SIP for the first year.
- Choose a yearly step-up, as a percentage (%) or a fixed amount (₹).
- Enter the yearly return you expect and the number of years.
- Read the estimated value, and the Compare chart to see the gain over a flat SIP.
How step-up SIP value is calculated
Each year is a 12-month SIP at that year's amount. The value at the end of each year grows for a further 12 months, and the next year's instalments are added:
Valuey = Valuey−1 × (1 + r)12 + Py × [((1 + r) 12 − 1) ÷ r] × (1 + r)
Py is the monthly instalment in year y and r the monthly return (yearly return ÷ 12 ÷ 100). Instalments are invested at the start of each month, as on the SIP calculator, so a 0% step-up gives exactly the same answer.
Example: ₹10,000 a month, rising 10% a year, at 12% for 15 years. In the final year you invest ₹37,975 a month; in total you put in ₹38,12,698 and the estimated value is₹86,83,849.
Frequently asked questions
What is a step-up SIP?
A step-up (or top-up) SIP is a monthly mutual fund investment that rises once a year, by a percentage or a fixed amount. Most fund houses let you set this up when you start the SIP, so the increase happens automatically.
How much difference does stepping up make?
Starting at ₹10,000 a month and stepping up 10% a year at 12% for 15 years could grow to ₹86.84 lakh. A flat SIP of ₹10,000 would reach ₹50.46 lakh — so stepping up adds about ₹36.38 lakh.
Percentage or fixed-amount step-up — which is better?
A percentage step-up grows faster over time because each rise is bigger than the last. Over 15 years at 12%, a 10% step-up reaches ₹86.84 lakh, while adding a fixed ₹1,000 a month each year reaches ₹75.09 lakh. Pick what your income can keep up with.
What step-up rate should I choose?
Many people match it to their expected pay rise. Even a smaller step-up helps: at 5% a year the same SIP could reach ₹65.31 lakh.
Are these returns guaranteed?
No. Mutual fund returns change from year to year; the calculator assumes a steady return. At 8% instead of 12%, the 10% step-up SIP would grow to about ₹64.16 lakh.