Quick answer
A step-up SIP raises your monthly investment by a fixed percentage every year. At 12% returns, ₹10,000 a month stepped up 10% a year for 20 years grows to about ₹1.98 crore, compared with about ₹99.9 lakh from a regular ₹10,000 SIP. That is nearly double, from raises you would barely notice in your budget.
Key takeaways
- Match your step-up to your expected salary hike. 5–10% a year is realistic for most people.
- Most AMCs let you set up an automatic yearly top-up when you register the SIP.
- Because later instalments are larger, they compound for fewer years. Start as early as you can.
How a step-up SIP is calculated
The calculator runs your SIP month by month. After every 12 instalments, the monthly amount rises by your step-up percentage. Each instalment compounds at the monthly rate until the end of the period.
Monthly SIP in year k = P × (1 + s)k−1- P = starting SIP
- s = annual step-up rate
- Balance each month = (previous balance + SIP) × (1 + r/12)
Step-up vs regular SIP comparison
| Step-up | 10 yrs | 15 yrs | 20 yrs | 25 yrs |
|---|---|---|---|---|
| No step-up | ₹23.23 L | ₹50.46 L | ₹99.91 L | ₹1.9 Cr |
| 5% per year | ₹27.87 L | ₹65.31 L | ₹1.37 Cr | ₹2.73 Cr |
| 10% per year | ₹33.74 L | ₹86.84 L | ₹1.99 Cr | ₹4.28 Cr |
| 15% per year | ₹41.19 L | ₹1.18 Cr | ₹3.03 Cr | ₹7.26 Cr |
| 20% per year | ₹50.61 L | ₹1.65 Cr | ₹4.8 Cr | ₹13.24 Cr |
Frequently asked questions
What is a good step-up percentage?
Match it to your expected yearly salary increase, usually 5–10%. Even 5% makes a large difference over 20 years.
Can I step up by a fixed amount instead of a percentage?
Yes. Most fund houses allow either a fixed rupee top-up (e.g. ₹1,000 a year) or a percentage. This calculator uses a percentage. A fixed top-up grows more slowly over time.
Is a step-up SIP better than a higher SIP from day one?
A higher SIP from day one always ends up larger, because more money compounds for longer. A step-up SIP is for people who cannot afford the higher amount today but will be able to later.
How much does a ₹5,000 step-up SIP give in 20 years?
With a 10% yearly step-up at 12% returns, a ₹5,000 SIP grows to about ₹99,44,358 in 20 years.
Sources & methodology
Formulas follow the standard methods used by Indian banks, fund houses and government schemes. Rates and tax rules were checked against official sources on 1 October 2026. Read our methodology.
This calculator gives an estimate for planning purposes. Actual returns, tax and eligibility depend on your situation and on product terms. It is not financial advice.