A step-up SIP raises your monthly investment once a year, so the amount grows along with your income instead of staying where it was on day one. This calculator shows what that habit is worth: enter your starting SIP, the yearly increase, the expected return and the number of years.
You get the maturity value, the total you put in, a year-by-year table and a bar chart that sets the step-up SIP next to a flat SIP of the same starting amount. The step-up can be a percentage (say 10% a year) or a fixed rupee amount (say Rs 1,000 more each year).
Results use the same monthly compounding rule as the CalcMojo [LINK: sip-calculator], so a step of zero gives exactly the same figure as that tool. Every number is an estimate based on a constant assumed return.
Reviewed by: CalcMojo Editorial Team
How the step-up SIP is calculated
The calculator works month by month, which keeps the maths transparent:
- The monthly rate is the annual return divided by 12. At 12% a year the monthly rate is 1%.
- Each instalment is invested at the start of the month, so it earns that month's return. This is the same convention as the CalcMojo SIP calculator.
- For the first 12 months the instalment is your starting SIP. From the 13th instalment it rises, and it rises again every 12 months.
- With a percentage step-up, year Y pays SIP x (1 + step)^(Y-1) a month. With a fixed step-up, year Y pays SIP + (Y-1) x step a month.
- Each month: balance = (balance + instalment) x (1 + monthly rate).
The flat SIP in the comparison uses the same loop with no increase. That is why the flat figure always matches the plain SIP calculator.
Worked example with the default numbers
Start with Rs 10,000 a month, 12% expected return, 20 years and a 10% yearly step-up.
| Step-up SIP | Flat SIP | |
|---|---|---|
| Monthly SIP in year 1 | Rs 10,000 | Rs 10,000 |
| Monthly SIP in year 20 | Rs 61,159 | Rs 10,000 |
| Total invested | Rs 68,73,000 | Rs 24,00,000 |
| Estimated maturity value | Rs 1,98,88,715 | Rs 99,91,479 |
The step-up SIP ends with roughly Rs 98.97 lakh more. Part of that is simply more money going in: Rs 44.73 lakh extra invested. The rest is the return on that extra money, which is why the gap is larger than the extra deposits alone.
A shorter horizon shows the same pattern at a smaller scale. Over 10 years the same SIP with a 10% step-up reaches about Rs 33.74 lakh against Rs 23.23 lakh for the flat SIP, on Rs 19.12 lakh invested versus Rs 12 lakh.
Percentage step-up or fixed rupee step-up
A percentage step-up tracks salary growth. If your pay rises about 8-10% a year, an 8-10% step keeps your savings rate roughly constant. Because it compounds, the SIP can become large in later years: 10% a year turns Rs 10,000 into Rs 61,159 by year 20. Check that you could realistically afford the late-year amounts.
A fixed step-up is gentler. Adding Rs 1,000 a month each year on a Rs 10,000 SIP over 10 years invests Rs 17.4 lakh and reaches about Rs 31.45 lakh at 12%. It suits people whose income grows in steps rather than a steady percentage.
Many fund houses and platforms offer a top-up facility with a set percentage or amount and a fixed frequency, usually yearly. Check the exact options with your fund house, because the available step sizes and dates differ.
What this calculator does not model
- Returns are not constant. Equity markets move up and down. A real SIP will not grow along the smooth line in the chart, and the outcome depends on the sequence of returns.
- Costs. The return you enter should be after the fund's expense ratio. Exit load, stamp duty and other charges are not deducted.
- Taxes. The maturity value is before tax. See the section below.
- Inflation. A larger number in 20 years buys less than the same number today. Use the [LINK: lumpsum-calculator] to see an inflation-adjusted value for a one-time investment.
Tax on mutual fund gains (FY 2026-27)
Each SIP instalment is a separate purchase with its own holding period. For equity-oriented mutual funds, gains on units sold within 12 months are short-term and taxed at 20%. Gains on units held for more than 12 months are long-term: the first Rs 1.25 lakh of long-term gains in a financial year is exempt, and the rest is taxed at 12.5%. Surcharge and 4% cess apply on top where relevant.
These rates were set by the Union Budget of July 2024 and, as far as the sources listed below show, continue for FY 2026-27, the first year of the Income-tax Act, 2025. Rules for debt funds and hybrid funds are different and have changed several times, so check the CBDT guidance linked below for your fund type. This page is general information, not tax advice.
A sensible way to choose the step
- Start with an amount you can keep paying through a bad year, not the largest amount you can manage in a good one.
- Tie the step to something you control, such as your yearly increment date, and decide the percentage in advance.
- Review once a year. If income stalls, a smaller step is better than stopping the SIP.
- Keep the assumed return modest. Try 8%, 10% and 12% in the calculator and plan on the lower one.
Frequently asked questions
What is a step-up SIP?
A step-up SIP raises your monthly SIP amount at a fixed interval, usually once a year, by a percentage or a fixed rupee amount. It lets your investment grow with your income.
Is a step-up SIP better than a flat SIP?
It produces a larger corpus because more money is invested, and the later, larger instalments also compound. It also needs a higher monthly outlay each year, so the right choice depends on whether you can afford the increases.
Which compounding method does this calculator use?
Monthly. The monthly rate is the annual return divided by 12, and each instalment is invested at the start of the month. The CalcMojo SIP calculator uses the same method.
Why does my fund house show a slightly different number?
Real funds do not earn a constant return, and platforms may use different timing conventions or a different step date. Use this figure as a planning estimate, not a prediction.
How much should I step up each year?
A common starting point is to match your expected salary growth, often 5-10% a year. Choose a figure you can sustain, and review it yearly.
How are SIP gains taxed in FY 2026-27?
For equity-oriented funds, gains on units held up to 12 months are taxed at 20%. Gains on units held longer are taxed at 12.5% above Rs 1.25 lakh of long-term gains in the year. Other fund types follow different rules.
Are the results guaranteed?
No. Mutual fund returns are market-linked and can be negative. The calculator assumes one constant return only to make planning possible.
Sources & Methodology
- PIB: Capital gains taxation simplified and rationalised (Budget 2024) — short-term rate of 20% and long-term rate of 12.5% on listed equity and equity-oriented fund units, and the Rs 1.25 lakh long-term exemption.
- PIB: CBDT FAQs on the new capital gains regime — holding periods and treatment of other fund types.
- Income-tax Act, 2025 as amended by the Finance Act, 2026 (Income Tax Department) — the Act in force from 1 April 2026.
- AMFI: investor disclaimer — mutual fund returns cannot be guaranteed.
- Method: future value of an annuity-due with a monthly rate of annual return / 12, the same as the CalcMojo SIP calculator, with the instalment raised every 12 months.
This calculator provides estimates based on a constant assumed return. Mutual fund investments are subject to market risks. Read all scheme related documents carefully. Returns are not guaranteed, and past performance does not indicate future results. This is not investment or tax advice; speak to a SEBI-registered investment adviser or a qualified tax professional.
Data accurate as of: November 2026