A Step-up SIP of ₹10,000/month for 15 years at 12% grows to ₹85.98 L.
Future Value = Σ over each year y of {Monthly SIP × (1 + Step-Up %)^y} compounded monthly at the return rate for the remaining months
| Input | Value |
|---|---|
| Starting Monthly SIP | ₹10,000 |
| Annual Step-up | 10% |
| Expected Return (p.a.) | 12% |
| Investment Period | 15 yr |
| Maturity Value | ₹85,97,871 |
| Total Invested | ₹38,12,698 |
| Wealth Gained | ₹47,85,173 |
| Extra vs Flat SIP | ₹36,02,069 |
Why the step-up changes everything
A flat SIP quietly shrinks in real terms — ₹10,000 a month is a serious commitment today and pocket change to your salary ten years from now. A step-up SIP raises the instalment by a fixed percentage every year, keeping your investing in proportion to your growing income.
What step-up percentage should I choose?
Mirror your expected salary growth — 8-10% a year is realistic for most careers. The test is that the higher instalment should feel the same relative to income each year; if a hike disappoints, most platforms let you skip or edit that year’s step without breaking the SIP.
Step-up SIP or a second SIP later — any difference?
Mathematically they’re equivalent (more money invested earlier compounds identically), but behaviourally the step-up wins: it’s decided once and automated, whereas “I’ll start another SIP after my raise” competes with lifestyle inflation every single year — and usually loses.