Step-up SIP Calculator

Calculate the power of Step-up SIP with annual increments. See how increasing your SIP amount annually can help you build a larger corpus and beat inflation effectively.

Calculate Your Step-up SIP Returns

Enter your details to see the difference between regular SIP and Step-up SIP

Investment Details

Percentage by which SIP amount increases annually

Comparison Results

Enter details and calculate to see comparison

Benefits of Step-up SIP

Why Step-up SIP is a smarter investment strategy

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Beat Inflation

Annual increments help your investments keep pace with inflation

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Higher Returns

Potentially generate significantly higher corpus compared to regular SIP

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Goal Achievement

Reach your financial goals faster with systematic increment strategy

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Flexible Increment

Choose your own annual increment percentage as per your income growth

How Step-up SIP Works

Step-up SIP is an advanced investment strategy that automatically increases your SIP amount annually, helping you combat inflation and accelerate wealth creation.

Step-up SIP Calculation Formula

SIP(n) = Initial SIP × (1 + Step-up Rate)^(n-1)

Example: ₹5,000 SIP with 10% annual step-up for 15 years

Year 1: ₹5,000
Year 5: ₹7,321
Year 10: ₹11,781
Year 15: ₹20,886
1

Start with Regular Amount

Begin your SIP with a comfortable monthly amount, just like regular SIP. Choose an amount that fits your current income.

2

Set Annual Increment Rate

Choose your annual step-up percentage (typically 5-15%). This should align with your expected salary growth and inflation rate.

3

Automatic Annual Increases

Every year, your SIP amount automatically increases by the chosen percentage, requiring no manual intervention.

4

Accelerated Wealth Creation

Higher investments in later years benefit from remaining investment period, creating significantly larger corpus than regular SIP.

Step-up SIP: Frequently Asked Questions

What is the ideal step-up percentage?

The ideal step-up percentage is typically 5-15% annually, depending on your income growth expectations. Conservative investors can choose 5-7%, while those expecting higher salary increments can opt for 10-15%.

Can I modify step-up percentage later?

Yes, most fund houses allow you to modify the step-up percentage. You can increase, decrease, or even disable the step-up feature by submitting a request form or through online platforms.

What if I can't afford the increased amount?

If you cannot afford the stepped-up amount in any year, you can pause the increment for that year or reduce the step-up percentage. Most AMCs provide flexibility to accommodate changing financial situations.

Is step-up SIP better than regular SIP?

Step-up SIP typically generates higher returns than regular SIP due to increased investments over time. It's particularly beneficial for long-term goals and helps maintain the real value of investments against inflation.

When does the step-up happen?

Step-up typically happens on the anniversary date of your SIP registration. For example, if you started SIP in January, the step-up will occur every January thereafter.

Do all mutual funds offer step-up SIP?

Most leading mutual fund companies offer step-up SIP facility. However, availability may vary across different schemes and AMCs. Check with your fund house or distributor for specific scheme availability.

What's the minimum step-up percentage?

Most fund houses allow step-up percentages starting from 5% annually. Some may have different minimum thresholds, typically ranging from 5% to 10%. There's usually no maximum limit on step-up percentage.

Can I combine step-up SIP with multiple funds?

Yes, you can set up step-up SIP across multiple mutual fund schemes to diversify your portfolio. Each SIP can have different step-up percentages based on your investment strategy and goals.

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