What this calculator does
A regular SIP invests the same amount every month for the whole period. A step-up SIP keeps the amount steady within each year, then raises it at the start of the next year, either by a percentage of the current SIP or by a fixed rupee amount. Most people choose a step-up that matches their yearly salary increment, so the SIP grows as their income grows.
The calculator assumes each instalment is invested at the start of the month and compounds monthly at one twelfth of the annual return you enter. It runs the numbers month by month for the full duration, and runs a second set with no step-up so you can compare the two.
How to read the result
Total invested is the sum of every instalment you would put in. Estimated returns is the difference between the final value and what you invested. The line below the figures shows what the same starting SIP would reach if you never raised it, and how much the step-up adds on top.
The year-by-year table shows your monthly SIP in each year, the total invested so far and the estimated value at the end of that year. The chart plots both paths. Notice how the gap widens in later years: the larger instalments of later years have less time to compound, but there are many more rupees working.
Keep the assumptions honest
Real returns are not smooth. Try a lower return to see a more cautious outcome, and pick a step-up you can keep going through ordinary and difficult years alike.
Frequently asked questions
- What is a step-up SIP?
- A step-up SIP is a monthly investment that you raise once a year, either by a percentage or by a fixed rupee amount, usually in line with your salary increments.
- Is a 10% annual step-up realistic?
- For many salaried investors it is, because it often tracks annual increments. Choose a figure you can sustain comfortably; a smaller step-up kept going is better than a large one abandoned.
- Does the calculator guarantee the final value?
- No. It uses the constant rate of return you enter. Actual mutual fund returns vary year to year and can be negative.