Step-Up SIP Wealth Calculator
As your salary increases each year with appraisals, your investments should too. See how increasing your monthly SIP by just 10% annually creates massive wealth.
Compared to a flat non-increasing SIP of ₹15,000/mo!
Key Investment Principles
• Automate with appraisal: Set your mutual fund mandate to auto-step up 10% in April or May when appraisals take effect.
• Power of Compounding: In a 15-year SIP, more than 60% of the final maturity corpus comes from compounding returns, not your invested principal!
Step-Up SIP Calculator — Frequently Asked Questions
What is a step-up SIP and how is it different from a regular SIP?
A regular SIP invests the same amount every month for the whole tenure. A step-up SIP raises that contribution by a fixed percentage each year — usually in line with your annual appraisal — so your investment grows with your income instead of staying frozen at the amount you could afford on day one.
How much difference does a 10% annual step-up actually make?
Substantially more than most people expect, because each increase compounds for the remaining years. Over a 12–15 year horizon a 10% annual step-up typically produces a corpus 60–90% larger than a flat SIP of the same starting amount, without ever requiring a painful jump in contribution.
What return rate should I assume for an equity mutual fund SIP?
Indian diversified equity funds have historically delivered roughly 11–13% CAGR over long periods, which is why 12% is the common planning assumption. Returns are not guaranteed and short horizons can produce far lower or negative outcomes — use a more conservative 8–10% for goals under seven years.
Are SIP returns taxable in India?
Yes. Each SIP instalment is a separate purchase for capital gains purposes. Equity fund units held over twelve months attract long-term capital gains tax at 12.5% above the ₹1.25 Lakh annual exemption; units sold within twelve months are taxed at 20% as short-term gains.
Should I stop my SIP when the market falls?
Falling markets are when a SIP does its best work — the same instalment buys more units at lower prices, which lowers your average cost. Stopping during a decline locks in the downside and forfeits the recovery, which is the main reason SIP investors underperform the funds they hold.
Assumptions and formulas last reviewed on . See our calculation methodology.