Reviewed by Finin2min Editorial Desk · Last reviewed 11 August 2026
Project a monthly SIP that increases annually by a fixed percentage and compare invested amount with future value.
SIP assumptions
Future value
—
Total invested
—
Estimated gain
—
Monthly SIP in final year
—
Calculation guidance will appear here.
How This Is Calculated
A step-up SIP increases your monthly investment by a fixed percentage each year (commonly matched to expected salary growth), rather than keeping it flat. This calculator compounds monthly contributions at your expected return, increasing the monthly amount at each year's anniversary, to project the future value — typically reaching the same goal faster, or a larger corpus for the same starting SIP, than a flat SIP.
Frequently Asked Questions
How much bigger a corpus does a step-up SIP build versus a flat SIP?
▼
It depends on the step-up percentage and time horizon, but even a modest annual step-up (5-10%) compounds meaningfully over a long horizon, since your later, larger contributions still have years left to grow — use the calculator with your own numbers to see the specific difference for your goal.
What step-up percentage should I use?
▼
A common approach is to match your step-up rate to your expected annual salary growth (so the SIP stays a constant percentage of income), though some investors choose a fixed rate like 10% regardless of salary changes for simplicity.
Is a step-up SIP better than starting with a higher flat SIP?
▼
If you can genuinely afford the higher flat SIP from day one, that generally builds a larger corpus (since more money is invested and compounding earlier). Step-up SIP is primarily useful when you can't afford a large SIP immediately but expect your income to grow.
Scope: Projects the maturity value of a SIP where the monthly instalment increases by a fixed percentage each year (a 'step-up' or 'top-up' SIP), compared against a flat (non-increasing) SIP of the same starting amount.
Calculation logic
For each year, compute that year's monthly instalment = Year 1 monthly instalment × (1 + step-up percentage)(year number − 1).
Compound each year's monthly instalments forward to the maturity date at the entered expected monthly return rate, summing the future value contribution of every month's instalment across the full tenure.
Compare the step-up SIP's total maturity value and total amount invested against a flat SIP (using the Year-1 instalment held constant throughout) to show the incremental benefit of stepping up contributions as income grows.
Inputs and assumptions
Return convention: the expected annual return is treated as an effective annual rate, so the monthly rate is (1 + r)1/12 − 1 and 12% a year compounds to exactly 12% over a year. Calculators that divide the annual rate by 12 give slightly higher results for the same input; the SIP calculator uses that convention.
Step-up percentage and expected return rate are user-entered planning assumptions — actual future income growth and market returns will differ from these assumptions.
Step-up is assumed to occur annually on the SIP anniversary, the common convention for how step-up SIP facilities are structured by mutual fund platforms.
Exclusions and edge cases
Does not model a scenario where step-up is skipped or reduced in a particular year (e.g., due to a career gap) — this is a consistent, uninterrupted step-up projection unless the user re-runs it with adjusted assumptions for specific years.
Tax treatment of the maturity value follows standard equity/debt/hybrid mutual fund capital-gains rules depending on the fund category selected, applied uniformly across all instalments regardless of their individual purchase date, consistent with standard SIP taxation (each instalment has its own holding period for tax purposes, which the underlying tax computation — not this projection — would need to track separately at redemption).
Sources
No specific external regulatory source applies beyond general market-linked instrument mechanics.
Review status: reviewed and approved by CA Nikhil Gupta on 18 July 2026.
Guides that use this calculator
Background, worked examples and the rules behind these numbers.
Finin2min is not registered with the Securities and Exchange Board of India (SEBI) as an Investment Adviser or as a Research Analyst. This tool performs an arithmetic calculation on the figures you enter and is published for general information and educational purposes only. It is not investment advice, it is not personalised to your financial circumstances, objectives or risk tolerance, and it is not a recommendation to buy, sell or hold any security, scheme or product. Projected values are illustrative and follow directly from the assumptions you supply; actual returns will differ, and past performance does not indicate future results. Consider consulting a SEBI-registered Investment Adviser before acting on any investment decision.