Step-up SIP Calculator - Calculate SIP with Annual Increment

A step-up SIP is a systematic investment plan where you automatically increase your monthly investment amount by a fixed percentage annually. For example, if you start with ₹5,000 per month and choose a 10% annual step-up, your investment becomes ₹5,500 in the second year, ₹6,050 in the third year, and so on. This helps align your investments with income growth and beats inflation.

The ideal step-up percentage should match your expected annual salary increment. Most professionals use 10-15% step-up, which aligns with typical salary hikes in India. Conservative investors can opt for 5-7%, while aggressive savers or young professionals with rapid career growth can choose 15-20% or higher annual increments.

Step-up SIP typically generates 30-50% higher corpus than regular SIP over long periods. With a 10% annual step-up over 20 years, your final corpus can be 40-50% higher than a regular SIP. The exact difference depends on the step-up rate, investment period, and market returns. Our calculator shows precise comparisons based on your inputs.

Yes, you can modify or skip the step-up increment for any year based on your financial situation. Most mutual fund platforms allow you to adjust the annual increment percentage or pause the increase if needed. You can resume the step-up when your financial situation improves. This flexibility is a key advantage of step-up SIPs.

You can start a step-up SIP with as low as ₹500 per month in most mutual fund schemes. However, for meaningful wealth creation, financial experts recommend starting with at least ₹1,000-₹2,000 per month. The beauty of step-up SIP is that you can start small and gradually increase your investment as your income grows.

Equity funds, especially large-cap and flexi-cap funds, work best for step-up SIP due to their long-term growth potential. ELSS funds are excellent as they provide tax benefits under Section 80C. For conservative investors, balanced hybrid funds offer a mix of equity and debt. The key is to choose funds aligned with your risk appetite and investment horizon.

Yes, step-up SIPs in ELSS funds qualify for tax deduction up to ₹1.5 lakh under Section 80C. Long-term capital gains up to ₹1 lakh per year are tax-free, and gains above this are taxed at 10% without indexation. Since each SIP installment is treated separately for tax purposes, you can optimize your tax liability effectively with proper planning.

Step-up SIP helps beat inflation by increasing your investment amount annually, typically matching or exceeding the inflation rate. While inflation reduces the purchasing power of money, step-up SIP ensures your investment grows in real terms. For example, with 6% inflation and 10% annual step-up, your investment growth outpaces inflation by 4% annually, preserving and enhancing your wealth's real value.