Step-up SIP Calculator
Accelerate Your Investment Growth
Is Your Monthly Investment Keeping Pace with Your Annual Raise?
The single biggest mistake investors make is keeping their Systematic Investment Plan (SIP) fixed while their income grows. Our Step-Up SIP Calculator is designed to capitalize on the investor’s career growth.
It automatically turns your expected salary hikes into exponential wealth growth, ensuring your investment plan accelerates alongside your career and maximizing the power of compounding for your long-term financial goals.
Why Use This Calculator?
Plan for Growth :
See how increasing your SIP each year can lead to a much larger final corpus than a fixed investment.
Maximize Compounding :
Maximizes the power of compounding over the long term by front-loading your total contributions in the later, higher-income years.
Clear Roadmap :
Get a clearer path to reach your financial goals faster by utilizing your full earning & savings potential.
Step-Up SIP Corpus Calculator
Estimate the total wealth accumulated over a set investment term.
Total Accumulated Corpus:
0
Calculation Error:
Example: Calculate the Corpus using Step Up SIP
You will enter the following details to plan your goal:
Input Field
Description
Initial One-Time Investment (₹)
Your initial lump sum investment amount (if any).
Starting Monthly Investment (SIP – ₹)
Your regular, starting monthly SIP amount
Yearly Increase in SIP (%)
The fixed percentage by which you plan to increase your SIP each year.
Expected Return (%)
Your expected annual rate of return from investments.
Total Investment Years (Years)
The total number of years you plan to invest.
What the Calculator Tells:
Total Money Invested
The total capital contributed over the investment period, including all step-ups.
Total Accumluated Corpus
The final accumulated value of your investment, reflecting the principal plus all compounding returns.
How to use this Calculator?
The Step-up SIP Calculator helps you define a proactive strategy to achieve a specific investment goal by incrementally increasing your SIPs based on your salary increments.
- Input Starting Investment: Enter your Initial One-Time Investment (if any), Starting Monthly Investment, Total Investment Years, and Expected Return.
- Define Step-Up: Crucially, enter the Yearly Increase in SIP (%) (e.g., 5%) to reflect your anticipated salary growth.
- Calculate Growth: The calculator models the annual increase and the compounding effect, providing the Total Money at End (Corpus).
- Adjustments: If the final amount is not meeting your goal, make changes to the attributes like the Starting Monthly Investment, % Increase, or Total Investment Years to achieve the desired corpus.
This systematic approach ensures your savings grow faster than inflation and your own income, securing your financial future efficiently.
Schedule a free consultation call to discuss your
goals and to define a strategy.
Frequently Asked Questions (FAQs)
01 What is a Systematic Investment Plan (SIP) with Step-up?
01 What is a Systematic Investment Plan (SIP) with Step-up?
- A SIP is a method of regularly investing a fixed amount (e.g., monthly) in mutual funds.
- The Step-up feature allows you to increase this fixed SIP amount by a certain percentage (e.g., or ) each year.
- This helps you start small and increase your investment as your income grows, ultimately building a much larger corpus over time.
02 Why is SIP with Step-up a good investment strategy?
02 Why is SIP with Step-up a good investment strategy?
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Aligns with Income Growth: It matches your investment growth with your expected income growth over the years, ensuring you are always saving a proportional amount.
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Rupee Cost Averaging: Reduces the impact of market ups and downs by averaging your purchase price over time.
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Faster Corpus Growth: The step-up feature helps you gradually invest more, leading to a significantly larger final corpus compared to a fixed SIP.
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Benefit from Compounding: Allows your money to grow exponentially by reinvesting earnings.
03 How often should I step up my SIP?
03 How often should I step up my SIP?
- Most commonly, the step-up is done annually.
- This allows you to align the increase with your yearly salary increments or business income growth.
- You can set a fixed percentage (e.g., 5% ) or adjust the amount manually based on your financial situation.
04 What happens if my income doesn't increase as expected, and I can't step up my SIP?
04 What happens if my income doesn't increase as expected, and I can't step up my SIP?
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That’s okay. The step-up feature is flexible.
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You are not forced to increase your SIP if your income doesn’t allow it. You can simply continue with your existing SIP amount.
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The goal is to maintain disciplined investing. Even a fixed SIP is powerful over the long term. You can restart the step-up feature when your financial situation improves.
05 Is a Step-up SIP suitable for all financial goals?
05 Is a Step-up SIP suitable for all financial goals?
Yes, a Step-up SIP is suitable for most long-term financial goals (typically 10 years or more), especially those that benefit from accumulation over time. This includes:
- Retirement planning.
- Child’s education or marriage funding.
- Accumulating a down payment for a house.
