Financial calculators by Dailytrades
Plan your financial goals with tools built by Dailytrades - India‘s platform for trading and investment insights.
Step Up SIP Calculator
Calculate how increasing your monthly SIP contributions every year boosts your long-term compounding wealth.
What is a Step Up SIP Calculator?
A Step Up SIP (Top-Up SIP) Calculator helps you calculate the exponential growth of your mutual fund investments when you increase your monthly contribution by a fixed percentage (e.g. 10% or 15%) every year. As your income grows with annual appraisal hikes, stepping up your SIP ensures your investment rate matches your lifestyle and financial goals.
Stepping up your SIP by just 10% annually can nearly double your final retirement corpus over 15 to 20 years compared to a regular fixed monthly SIP.
How Step Up SIP Calculations Work
In a Step Up SIP, your monthly installment increases at the start of every 12-month period:
Yearly Installment Hike
• Year 1: ₹25,000 / month
• Year 2 (10% Step Up): ₹27,500 / month
• Year 3 (10% Step Up): ₹30,250 / month
• Year 10: ₹58,949 / month
Regular vs Step Up Comparison
• Regular SIP (₹25k/mo @ 12%): Total Corpus = ₹58.08 Lakhs
• 10% Step Up SIP (₹25k/mo @ 12%): Total Corpus = ₹81.72 Lakhs!
• Extra Corpus Gained: +₹23.64 Lakhs
Key Benefits of Step Up SIP
• Aligns with Income Growth: As your salary increases with annual appraisals, step up SIP automatically directs a portion of your hike into wealth building.
• Beats Inflation: Fixed monthly investments lose purchasing power due to inflation. Stepping up ensures your real net worth grows faster.
• Disciplined Financial Planning: Helps achieve major goals like buying a home, child education, or early retirement much faster.