Step Up SIP Calculator with Inflation
Enter the SIP you start with and how much you'll raise it every year, by a percentage or a fixed amount. You get what it grows to, what that buys in today's rupees, and how much more it makes than leaving the SIP flat. Add what you've already invested and it grows alongside. No step-up in mind? The SIP calculator handles a plain SIP.
By Hardik Vegad, founder of WealthGamma · Last updated
Your step-up SIP will grow to
₹1.99 Cr
- Total you invest over 20 years
- ₹68,73,000
- Wealth gained
- ₹1,30,15,716
- Worth in today's money
- ₹62,01,396
Without step-up
₹99.91L
With step-up
₹1.99 Cr+99% more
Earn ₹35,01,306 more by raising your step-up to 12% a year
Step-up SIP vs flat SIP, year by year
- Step-up SIP
- Flat SIP
- Invested (step-up)
Year-by-year tableShowHide
| Year | Monthly SIP | Invested | Value | Flat SIP value | In today's money |
|---|---|---|---|---|---|
| 1 | ₹10,000 | ₹1,20,000 | ₹1,28,093 | ₹1,28,093 | ₹1,20,843 |
| 2 | ₹11,000 | ₹2,52,000 | ₹2,85,241 | ₹2,72,432 | ₹2,53,864 |
| 3 | ₹12,100 | ₹3,97,200 | ₹4,76,410 | ₹4,35,076 | ₹4,00,003 |
| 4 | ₹13,310 | ₹5,56,920 | ₹7,07,323 | ₹6,18,348 | ₹5,60,266 |
| 5 | ₹14,641 | ₹7,32,612 | ₹9,84,570 | ₹8,24,864 | ₹7,35,728 |
| 6 | ₹16,105 | ₹9,25,873 | ₹13,15,734 | ₹10,57,570 | ₹9,27,541 |
| 7 | ₹17,716 | ₹11,38,461 | ₹17,09,527 | ₹13,19,790 | ₹11,36,933 |
| 8 | ₹19,487 | ₹13,72,307 | ₹21,75,956 | ₹16,15,266 | ₹13,65,221 |
| 9 | ₹21,436 | ₹16,29,537 | ₹27,26,501 | ₹19,48,215 | ₹16,13,811 |
| 10 | ₹23,579 | ₹19,12,491 | ₹33,74,326 | ₹23,23,391 | ₹18,84,206 |
| 11 | ₹25,937 | ₹22,23,740 | ₹41,34,516 | ₹27,46,148 | ₹21,78,012 |
| 12 | ₹28,531 | ₹25,66,114 | ₹50,24,342 | ₹32,22,522 | ₹24,96,944 |
| 13 | ₹31,384 | ₹29,42,725 | ₹60,63,565 | ₹37,59,311 | ₹28,42,836 |
| 14 | ₹34,523 | ₹33,56,998 | ₹72,74,790 | ₹43,64,180 | ₹32,17,647 |
| 15 | ₹37,975 | ₹38,12,698 | ₹86,83,849 | ₹50,45,760 | ₹36,23,467 |
| 16 | ₹41,772 | ₹43,13,968 | ₹1,03,20,256 | ₹58,13,782 | ₹40,62,531 |
| 17 | ₹45,950 | ₹48,65,364 | ₹1,22,17,708 | ₹66,79,208 | ₹45,37,222 |
| 18 | ₹50,545 | ₹54,71,901 | ₹1,44,14,663 | ₹76,54,392 | ₹50,50,088 |
| 19 | ₹55,599 | ₹61,39,091 | ₹1,69,54,991 | ₹87,53,254 | ₹56,03,845 |
| 20 | ₹61,159 | ₹68,73,000 | ₹1,98,88,715 | ₹99,91,479 | ₹62,01,396 |
What is a step-up SIP?
A step-up SIP (also called a top-up SIP) is a SIP that rises every year, by a percentage or a fixed amount. You start with what you can afford today and raise it as your salary grows, instead of investing the same amount for 20 years.
With a 10% step-up, ₹10,000 a month becomes ₹11,000 in year 2, ₹12,100 in year 3, and has doubled by year 9.
How much more does a step-up SIP make?
A lot. ₹10,000 a month for 20 years at 12% grows to ₹99,91,479 as a flat SIP. Raise it 10% every year and it grows to ₹1,98,88,715, about 1.99 times as much.
Part of that is simply more money going in: ₹68,73,000 instead of ₹24,00,000. The rest is growth on it. In today's money, the step-up SIP is worth ₹62,01,396; the flat one ₹31,15,390.
| Step-up a year | You invest | Grows to | SIP in year 20 |
|---|---|---|---|
| None | ₹24L | ₹99.91L | ₹10,000 |
| 5% | ₹39.68L | ₹1.37 Cr | ₹25,270 |
| 6% | ₹44.14L | ₹1.47 Cr | ₹30,256 |
| 10% | ₹68.73L | ₹1.99 Cr | ₹61,159 |
| 15% | ₹1.23 Cr | ₹3.03 Cr | ₹1,42,318 |
Starting SIP ₹10,000 a month, 12% a year, paid at the start of each month.
How is a step-up SIP calculated?
Year by year. Each year is an ordinary SIP at that year's amount, and everything already invested keeps growing. The SIP formula for one year of instalments is:
Year's SIP = Starting SIP × (1 + step-up)year − 1
Value at year end = Value at year start × (1 + i)12 + Year's SIP × [((1 + i)12 − 1) ÷ i] × (1 + i)
Value in today's money = Final value ÷ (1 + inflation)years
i is the annual return divided by 12. For a ₹10,000 SIP with a 10% step-up at 12%:
- Year 1: ₹10,000 a month, worth ₹1,28,093 by the end of the year
- Year 2: ₹11,000 a month, worth ₹2,85,241 by the end of the year
- Year 3: ₹12,100 a month, worth ₹4,76,410 by the end of the year
- Year 20: ₹61,159 a month, and the whole SIP is worth ₹1,98,88,715
Why does a flat SIP lose to inflation?
Because ₹10,000 buys less every year. At 6% inflation, the ₹10,000 you invest in year 20 buys what ₹3,305 buys today. Without meaning to, you're investing a third as much by the end.
A step-up equal to inflation fixes that: a 6% step-up keeps every instalment worth about ₹10,000 in today's money, and grows to ₹1.47 Cr instead of ₹99.91L. Anything above inflation makes your SIP genuinely bigger over time.
What step-up percentage should you choose?
At least your inflation rate, around 6%, so your SIP never shrinks in real terms. If your salary rises 8% to 10% a year, a 10% step-up is realistic. The step-up only works if you keep paying it, so pick what your yearly raise can carry, not the biggest number.
Expect raises to slow later in your career. If you only step up for the first 10 years and hold the SIP flat after that, the ₹10,000 SIP tops out at ₹23,579 a month and still grows to ₹1.66 Cr, well above the flat ₹99.91L.
Should you step up by a percentage or a fixed amount?
A percentage grows with your income; a fixed amount doesn't. Raising ₹10,000 by ₹1,000 every year grows to ₹1.58 Cr in 20 years at 12%. A 10% step-up starts with the same ₹1,000 raise but grows to ₹1.99 Cr, because each raise is 10% of a bigger SIP.
A fixed amount is easier to plan early on, when ₹1,000 is a real stretch. Switch the step-up to ₹ in the calculator to compare.
What if you already have investments?
Add them. Money you already hold keeps compounding next to your SIP. With ₹5 lakh already invested, the ₹10,000 SIP with a 10% step-up grows to ₹2.47 Cr in 20 years at 12%, instead of ₹1.99 Cr. The ₹5 lakh alone becomes about ₹48.23L.
Enter it under "Already invested". The calculator adds it to both the step-up and the flat SIP, so the gap between them is only what the step-up adds.
How much step-up SIP do you need for ₹1 crore?
With a 10% yearly step-up at 12%, you can start at ₹5,028 a month and reach ₹1 crore in 20 years. A flat SIP needs ₹10,009 a month from day one.
| Time to ₹1 crore | Flat SIP | Starting SIP, 10% step-up |
|---|---|---|
| 10 years | ₹43,041 | ₹29,636 |
| 15 years | ₹19,819 | ₹11,516 |
| 20 years | ₹10,009 | ₹5,028 |
12% a year, ₹1 crore in future rupees. For a goal in today's money, use the goal SIP calculator, which has a step-up too.
How do you set up a step-up SIP?
Most fund houses and investing apps offer a top-up or step-up option when you register a SIP: you choose a fixed amount or a percentage, and how often it rises, usually once a year. For a SIP you already run, add the top-up through the app, or start a second SIP in the same fund for the extra amount.
Time the raise with your salary hike, so the higher SIP never feels like a cut in take-home pay.
What does a step-up SIP calculator not account for?
It assumes the same return every year and that you never miss a raise. Four things it leaves out:
- Uneven returns. The last years carry the biggest SIPs, so a crash near the end hurts a step-up SIP more than a flat one.
- Skipped raises. A year without a raise lowers every year's SIP after it.
- Tax. Equity fund gains held over a year are taxed at 12.5% above ₹1.25 lakh a year; gains within a year at 20%.
- Exit loads. Some funds charge a fee if you redeem within a set period.
Frequently asked questions
What is a step-up SIP?
A SIP that rises by a set percentage or amount every year. A ₹10,000 SIP with a 10% step-up becomes ₹11,000 a month in year 2 and ₹12,100 in year 3.
How much more does a 10% step-up SIP make?
₹10,000 a month for 20 years at 12% grows to ₹99.91L as a flat SIP and ₹1.99 Cr with a 10% yearly step-up, about 1.99 times as much.
What step-up percentage should I choose?
At least your inflation rate, around 6%, so the SIP keeps its buying power. 10% is common if your salary rises faster than prices. Pick what your yearly raise can carry.
Is a step-up SIP better than a normal SIP?
It builds much more, because you invest more as your income grows. It isn't a better fund or a higher return: the extra comes from the extra money you put in, and the years it has to grow.
Can I step up an existing SIP?
Yes. Most fund houses and investing apps offer a top-up option on a SIP, as a fixed amount or a percentage, usually once a year. You can also start a second SIP in the same fund.
How is step-up SIP return calculated?
Month by month. Each year's SIP compounds at the annual return ÷ 12, paid at the start of the month, and the SIP rises by the step-up at the start of every new year.