Calculators / Investments & growth
Investments & growth
Step-up SIP Calculator India
Calculate what a step-up SIP grows into when you raise it each year. ₹10,000 a month, raised 10% a year for 20 years at 12%, becomes about ₹1.86 crore, versus ₹92 lakh flat.
₹10,000 a month, raised 10% a year for 20 years at 12%, grows to ₹1.86 crore, double the ₹92 lakh a flat SIP makes. The extra comes from the raises you already get.
About the step-up SIP calculator
A step-up SIP raises your monthly amount a set percentage every year, usually in step with your salary. Below the tool is what the number means, why the raise matters so much, what it leaves out, and how to size it to your own life.
| Approach | You invest | Becomes |
|---|---|---|
| Flat ₹10,000 a month | ₹24 lakh | ₹92 lakh |
| Step up 10% a year | ₹68.7 lakh | ₹1.86 crore |
Double the corpus. It invests more too, but from the raises you already get, not a tighter budget. Change the inputs above and this table follows them.
Your step-up by life stage
How much does raising it 10% a year add?
At ₹10,000 a month, 12% over 20 years, a flat SIP reaches about ₹92 lakh and a 10% step-up reaches about ₹1.86 crore, roughly double. Part of that is because you invest more, about ₹68.7 lakh against ₹24 lakh, but the extra comes from raises you already receive, not a tighter budget. Change the numbers above to see your own case.
How is a step-up SIP calculated?
An equity SIP earns no fixed monthly return, and nothing compounds neatly month by month; the value of your units moves with the market. The calculator takes the annual return you assume, splits it into an honest monthly rate, and applies it to each month's amount, raising that amount by your step-up percentage at the start of every year. The one number to get right is the monthly rate: for 12% it is about 0.95%, written (1+r)^(1/12) minus 1, not a flat 1%.
Why do some calculators show more than this?
Because they divide the annual return by 12 to get the monthly rate, a shortcut that compounds to about 12.7% a year rather than the 12% you asked for. On this step-up it pushes the figure to about ₹1.99 crore, roughly ₹13 lakh above the honest ₹1.86 crore.
| Method | Monthly rate used | This step-up |
|---|---|---|
| Shortcut: annual / 12 | 1.000% | ₹1.99 crore |
| Correct: (1 + r)^(1/12) - 1 | 0.949% | ₹1.86 crore |
Same inputs, about ₹13 lakh apart. This calculator uses the correct rate.
Is a 12% return realistic, and a 10% step-up?
12% is a common long-run planning assumption for diversified Indian equity, not a promise, and returns never arrive in a straight line. A 10% annual raise roughly tracks a normal appraisal, so the extra saving comes out of money you never had in hand. If your increments are smaller, use your real number; for a margin of safety on returns, plan on 10 to 11%.
What will the corpus be worth in today's money?
Less than the headline. At 6% inflation, ₹1.86 crore in 20 years buys about what ₹58 lakh buys today. The corpus is real, but plan the goal in today’s money and then inflate it. Tick "show the result in today’s money" above to see your own figure.
Does it account for expense ratio and tax?
No, and both matter. If your 12% is the index's return, your fund's expense ratio comes out of it, and the corpus is before capital-gains tax on redemption. Treat the figure as gross and best-case.
How much should I start with?
Work back from a goal, not forward from a round number. Decide what you are buying and when, then size the starting SIP to reach it. The Goal planner does exactly this, and a step-up lets you start smaller because the amount rises over time.
A flat SIP, or step it up?
A flat SIP is a pay cut you give yourself: inflation and your own rising lifestyle shrink a fixed amount every year, so the same debit sends a smaller slice of you forward over time. A step-up keeps your real investing rate steady. Start as high as you can, then raise it, and see the same money as a flat SIP to feel the gap.
How long should I stay invested?
As long as you can. Equity rewards horizon more than timing, and a step-up magnifies that because your biggest contributions land in the later, higher-income years. Over 25 years of the Nifty, no ten-year holding period ended in a loss. See the record.
What if I cannot raise it every year?
Then do not. A flat SIP is still powerful, and the step-up is a bonus, not a rule. Raise it in the years a raise arrives, skip the lean ones, and never stop the SIP itself to fund the increase.
Do I need a special product for a step-up SIP?
No. It is an instruction to your fund or platform to raise the amount each year, or you can simply increase the SIP yourself at each appraisal. It is a habit, not a product.