Step-up SIP Calculator
Raise your monthly investment a little each year as your income grows, and see how much difference that single habit makes over a full term.
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How it works
A step-up SIP increases the instalment by a set percentage every year. Because the increase applies to an amount that is itself already growing, the contributions rise geometrically rather than in a straight line.
The effect is large and consistently underestimated. A 10% annual step-up typically produces something like half again as much as a flat plan over twenty years, for a raise you barely notice month to month.
Each year: instalment = previous × (1 + step). Every instalment then compounds for its remaining term.
- Starting instalment — what you invest each month in year one
- Step-up — the percentage increase applied at the start of each subsequent year
- r — the monthly rate of return
Worked example
10,000 a month, stepped up 10% a year, for 20 years at 12%
Inputs
Results
The step-up almost exactly doubles the outcome against a flat 10,000 plan, and the extra you contribute is spread painlessly across two decades of pay rises.
Frequently asked questions
What step-up rate should I use?
Match it to your realistic annual pay rise, so the increase never bites. Somewhere between 5% and 10% suits most people. Setting it above your income growth means the plan eventually becomes unaffordable.
When does the increase apply?
At the start of each new year of the plan. Year one runs at the starting instalment throughout; year two runs at the stepped-up figure, and so on.
Is a step-up better than simply investing more now?
Investing more now is better if you can afford it, because early money compounds longest. The step-up exists for the far more common case where you cannot afford more now but will be able to later.
Is my data sent anywhere?
No. The calculation runs entirely in your browser. Nothing you type is transmitted to us or stored.
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