Step-Up SIP Calculator (Yearly Increase)
Enter the starting SIP, the yearly step-up and the expected return to see the difference a top-up makes.
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Step-Up SIP Calculator (Yearly Increase) by TheCalcTools
How the Step-Up SIP Calculator (Yearly Increase) works
A step-up (top-up) SIP raises the monthly amount once a year, usually in line with salary increases. Year k’s instalments are P × (1 + s)^k, each compounding until the end.
Summing each year’s SIP value gives a geometric series, which this calculator evaluates exactly. Returns are assumptions, not guarantees.
The formula
Worked example
Using the default values shown in the calculator:
| Starting monthly investment | $10000 |
|---|---|
| Increase every year | 10 % |
| Expected annual return | 12 % |
| Investment period (years) | 15 |
- Starting at 10,000 a month and stepping up 10% a year for 15 years at 12%: $8,683,849.
- A flat SIP reaches $5,045,760. In the final year you invest $37,975 a month.
Result:
| Estimated value with step-up | $8,683,849 |
|---|---|
| Total invested | $3,812,698 |
| Estimated gains | $4,871,152 |
| A flat SIP would reach | $5,045,760 |
| Monthly amount in the final year | $37,975 |
Frequently asked questions
How much difference does a 10% step-up make?
Over 15 years at 12%, a 10% yearly step-up builds roughly 1.8 times the corpus of a flat SIP, with about twice the money invested.
Sources and further reading
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This calculator gives estimates for information only. It is not financial advice, and your lender's or provider's figures will govern. Rates, fees and rules vary. See our disclaimer.