Step-Up SIP Calculator
See exactly how much more wealth a small annual increase to your SIP generates — versus keeping it flat forever. The difference is always surprisingly large.
Extra wealth from step-up
₹49.49 L
Step-up generates 2.0× more corpus than a flat SIP
Step-Up SIP corpus
₹99.44 L
Invested: ₹34.36 L
Regular SIP corpus
₹49.96 L
Invested: ₹12.00 L
Monthly SIP in final year (20)
₹30,580/month
Started at ₹5,000/month, stepped up 10%/yr
Regular SIP vs Step-Up SIP — corpus comparison
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Read articleWhat is a Step-Up SIP?
A Step-Up SIP (Systematic Investment Plan) or Top-Up SIP is an automated mutual fund investment strategy where your monthly contribution increases by a fixed percentage every year. It mathematically mirrors how actual corporate salaries grow in India.
Why you need to Step-Up your SIP
In a regular flat SIP, your absolute investment amount stays completely identical for 20+ years, even as your income doubles or triples due to inflation and promotions. This static behavior causes "lifestyle inflation"—where a large percentage of your excess growth income is inadvertently spent rather than invested.
As modeled by this step-up SIP calculator, committing to just a conservative 5% or 10% annual top-up drastically accelerates the compound interest effect on your portfolio, frequently doubling or tripling your final retirement corpus compared to a flat SIP.
The step-up SIP formula explained
Unlike a regular SIP which has one clean closed-form formula, step-up SIP is calculated year by year. Each year's SIP amount is treated as a separate SIP with a different monthly contribution and a different remaining investment horizon.
Step-Up SIP Formula
For each year y (from 1 to total years):
SIPy = Starting SIP × (1 + step-up%)^(y−1)
FVy = SIPy × ([1+r]^nremaining − 1) ÷ r × (1+r)
Total Corpus = Sum of all FVy
Worked example — the viral comparison
Inputs: ₹5,000/month starting SIP · 10% annual step-up · 12% return · 20 years
Regular SIP (₹5,000 flat)
₹49.9 lakh
Step-Up SIP (10% p.a.)
₹1.07 crore
The step-up generates ₹57+ lakh more — more than double the regular SIP — by simply increasing the monthly contribution by 10% each year. In year 20, the monthly SIP is ₹30,620. That aligns with how salaries actually grow, making this the most realistic way to model long-term wealth.
Frequently asked questions
Everything about step-up SIPs explained simply.
Ready to turn this into a real plan?
Now you know the power of stepping up. Aurelian Capital builds you a complete investment blueprint — portfolio allocation, goal probability, and a step-up plan personalised to your income.