Calculate SIP returns with annual step-up increases and inflation-adjusted values. See how increasing SIP yearly can 3X your wealth. Free tool for Indian mutual fund investors.
Initial monthly investment amount
Expected rate of return (10-12% for equity)
Number of years to invest (recommended: 10+ years)
Annual inflation rate (typically 5-7% in India)
Percentage increase each year (e.g., 10%)
Total Investment
₹68,73,000
Future Value (Nominal)
₹1,98,88,715
Total Gains
₹1,30,15,716
Real Value (Today's ₹)
₹62,01,396
Purchasing power in today's terms after 6% annual inflation
Real Gains
₹40,58,362
Your ₹1,30,15,716 gains in today's purchasing power
SIP increases by 10% annually
💡 Pro Tip: With 10% annual step-up, your final corpus is 86% higher than without step-up!
Disclaimer: This calculator provides estimates for educational purposes only. Actual returns may vary based on market conditions and fund performance. Past performance is not indicative of future results. Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing.
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An Advanced SIP (Systematic Investment Plan) Calculator with step-up and inflation adjustment features helps you plan monthly investments with annual increases. SIP is the most popular way to invest in mutual funds in India, allowing you to invest small amounts monthly instead of large lumpsum. This enhanced calculator shows how increasing your SIP annually (step-up) by 10-15% can dramatically boost wealth creation, and displays inflation-adjusted returns to show real purchasing power of your future corpus. Perfect for salary earners who get annual increments, long-term wealth creators planning for goals 15-30 years away, and investors wanting to understand real (post-inflation) returns vs nominal returns.
SIP step-up means increasing your monthly SIP amount annually, typically by 5-15%. Most investors' income grows 8-12% yearly (salary hikes, business growth). If you keep SIP constant at ₹10,000/month while income doubles, you're actually reducing savings as a percentage of income! Step-up maintains or increases your savings rate. Example: Start ₹10K, increase 10% yearly. Year 1: ₹1.2L invested. Year 10: ₹2.8L invested. Year 20: ₹7.3L invested. Without step-up, you'd invest only ₹1.2L every year. Mathematics: 10% step-up SIP for 20 years creates 2.5-3X more wealth than flat SIP! It's the single most powerful way to turbocharge wealth creation without feeling the pinch, as increases align with income growth.
Percentage Step-Up: Better for long-term (15+ years). Compounds like SIP itself. 10% annual increase means Year 1: ₹10K, Year 10: ₹23.5K, Year 20: ₹61K. Good if you expect consistent salary growth. Matches inflation + real income growth. Fixed Amount Step-Up: Easier to budget. ₹1,000 increase yearly means Year 1: ₹10K, Year 10: ₹19K, Year 20: ₹29K. Good for conservative planners, business owners with variable income. Recommendation: Young professionals (20-35 age): Use 10-12% percentage step-up to match career growth. Mid-career (35-50): Use 8-10% percentage or ₹2,000-3,000 fixed. Near retirement (50+): Use fixed amount to avoid overcommitment. Start conservative (5% or ₹1,000), increase if affordable!
General guideline: Match your expected annual income growth. Salaried employees: 8-12% (typical increment). Self-employed: 10-15% (variable but optimistic). Conservative investors: 5-7% or ₹1,000-2,000 fixed. Aggressive wealth builders: 15-20% (requires discipline). Formula: Commit 30-50% of annual raise to SIP increase. Example: ₹10L salary, 12% raise = ₹1.2L additional income. Current SIP: ₹10K/month (₹1.2L/year). Commit 40% of raise: ₹48K/year = ₹4K/month increase. New SIP: ₹14K/month (40% increase). Seems high but it's only 40% of raise, leaving 60% for lifestyle improvement. Warning: Don't commit 100% of raise to SIP - allow for lifestyle inflation too. 30-50% is sustainable sweet spot.
Inflation erodes purchasing power! ₹1 crore in 20 years ≠ ₹1 crore today. At 6% inflation, ₹1 crore in 20 years = ₹31 lakhs in today's purchasing power. This calculator shows both: Nominal Value (future ₹) and Real Value (today's ₹ equivalent). Example: Target ₹2 crore for child's education in 15 years. Nominal: ₹2 crore. Real Value (6% inflation): ₹83 lakhs. If MIT tuition costs ₹40L today, it'll cost ₹96L in 15 years. Your ₹2 crore nominal = ₹83L real might be enough (₹96L needed). Always plan with real values! Better to overshoot nominal target than undershoot real requirement. Use this formula for goals: Required Nominal = Required Today × (1.06)^Years. Then target that nominal amount with SIP.
Yes! SIP step-up is flexible. Most fund houses allow: (1) Change step-up percentage - increase from 5% to 10% or decrease to 0%, (2) Switch between percentage and fixed amount, (3) Pause step-up for 1-2 years (job loss, business downturn), (4) Resume later. How to modify: Log in to AMC portal (HDFC, ICICI, SBI MF, etc.), update SIP mandate with new step-up %, or contact fund house. Recommendation: Review annually. Had great year? Increase step-up to 15%. Tough year? Reduce to 5% or pause. The key is maintaining SIP, step-up is bonus. Life scenarios: Job change with 30% salary jump → increase step-up to 15-20% for 2-3 years. Business loss → pause step-up, maintain base SIP. New baby/EMI → reduce step-up but don't stop SIP. Marriage/dual income → double down on step-up at 20%.
Most equity and hybrid funds support step-up SIP, but availability varies by AMC (Asset Management Company). Availability Status: Full Support: HDFC MF, ICICI Pru MF, SBI MF, Axis MF, Aditya Birla Sun Life MF, UTI MF, Kotak MF - all offer percentage-based and amount-based step-up. Partial Support: Some smaller AMCs offer only fixed amount step-up, not percentage. Limited: Debt funds and liquid funds often don't support step-up. How to enable: While setting up SIP, look for 'Top-Up' or 'Step-Up' option in form. Choose annual increase percentage (5-20%) or fixed amount. AMC will auto-increase SIP every year. Alternative: If your AMC doesn't support auto step-up, manually increase SIP each year. Set calendar reminder for SIP anniversary, increase amount manually via app/website. Takes 5 minutes annually but achieves same result.
Simple method: Use expected salary growth. Conservative approach: Your Annual Increment % - 2% = SIP Step-up %. If you get 10% raise, use 8% step-up. Leaves buffer for lifestyle inflation. Aggressive approach: Annual Increment % = SIP Step-up %. If 12% raise, use 12% step-up. Matches income growth exactly. Detailed calculation: Current SIP: ₹15,000 (18% of ₹83,333 monthly salary). Expected raise: 10% → new salary ₹91,667/month. Maintain 18% savings rate: ₹91,667 × 18% = ₹16,500 new SIP. Increase: ₹16,500 - ₹15,000 = ₹1,500 (10% step-up). Rule of thumb: If saving 15-20% of income, step-up % can equal expected raise %. If saving <10%, be conservative with step-up (5-7%) to avoid overcommitment. Test affordability: After planned step-up, do you still have 3-6 months emergency fund? If yes, affordable. Are you left with discretionary income? If yes, sustainable.
Life happens! Solutions: (1) Pause step-up for 1 year - most AMCs allow this, resume next year. SIP continues at current level. (2) Reduce step-up percentage - instead of planned 10%, do 5% this year. (3) Skip step-up entirely for 1-2 years - no penalty, restart when ready. (4) Reduce base SIP temporarily if severe crisis, but avoid if possible. Impact analysis: Planned: ₹10K base, 10% step-up for 20 years = ₹3.04 crore. Paused 2 years (years 5-6): ₹2.87 crore (5.6% less). Still excellent outcome! Missing 2 years of step-up ≠ disaster. Key principle: Maintain base SIP at all costs. Step-up is enhancement, not requirement. Better to have ₹10K consistent SIP for 20 years than ₹10K with aggressive step-up that you stop after 5 years. Don't let perfect (planned step-up) be enemy of good (consistent base SIP).
Both strategies work, but step-up SIP is superior for most people. Step-Up SIP (Automatic): Disciplined - happens automatically, no decisions each year. Rupee cost averaging - spreads bonus across 12 months, buys in all market conditions. Never mistimed - no trying to time the market with lumpsum bonus. Psychologically easier - small monthly increases vs big yearly lumpsum decision. Bonus Lumpsum (Manual): Requires discipline - might spend bonus instead of investing. Timing risk - invest entire bonus in Jan, market crashes in Feb, feels bad. Might work better if bonus is very large (>₹5-10L) and you're experienced investor. Hybrid Approach (Best of both): Do step-up SIP for predictable income growth. PLUS invest 50% of unexpected bonuses/windfalls as lumpsum. Gives automation + flexibility. Example: ₹10K SIP with 10% step-up + ₹50K annual bonus invested separately = optimal.
Start: As soon as you start SIP! Even if starting at ₹1,000/month at age 22, enable 10% step-up. Your income will grow, SIP should too. By 30, you'll be investing ₹2,500/month without thinking about it. Stop/Reduce: Age 50-55 for retirement at 60. Last 5-10 years before retirement, stabilize SIP amount. Don't commit to aggressive step-ups if retiring soon. Scenario planning: Age 25-35: Aggressive step-up (12-15%). Career growth phase, income rises fast. Age 35-50: Moderate step-up (8-10%). Peak earning years, balance SIP with other goals (home, kids). Age 50-60: Conservative (5% or fixed amount). Approaching retirement, avoid overcommitting. Post-60: No step-up, possibly switch to SWP (Systematic Withdrawal Plan) for retirement income. Exception: If retiring at 45 (FIRE movement), stop step-up at 40. If working till 65, can maintain moderate step-up till 60. Adjust strategy based on personal retirement timeline.