Step-Up SIP Calculator: How Annual SIP Increases Grow Your Corpus
A 10% Annual Step-Up Can Double Your Corpus
Most people start a SIP and forget about it. But if you increase your SIP amount by just 10% each year (roughly in line with salary increments), your final corpus can be dramatically higher than a flat SIP — sometimes 70–100% more over 20 years.
Flat SIP vs Step-Up SIP: The Numbers
| Scenario | Starting SIP | Annual Step-Up | Total Invested (20 yrs) | Corpus at 12% |
|---|---|---|---|---|
| Flat SIP | ₹10,000/month | 0% | ₹24.0L | ₹99.9L |
| Step-Up SIP (10%) | ₹10,000/month | 10%/year | ₹68.7L | ₹2.09 crore |
| Step-Up SIP (15%) | ₹10,000/month | 15%/year | ₹1.18 crore | ₹3.59 crore |
The 10% step-up invests ₹44.7L more but generates ₹1.09 crore more in corpus — that’s the power of incremental compounding. The additional money you invest in later years still gets 10–15 years of compounding.
What Step-Up Percentage Should You Use?
- Conservative: 5% step-up (below most salary hikes — easy to maintain)
- Moderate: 10% step-up (matches typical salary increment — recommended)
- Aggressive: 15–20% step-up (only if your income is growing rapidly, e.g., early career in tech)
The key is to automate — most mutual fund platforms allow you to set annual step-up instructions. Use the step-up SIP calculator to see how different step-up rates affect your specific goal.