What is a step-up SIP?
A step-up SIP is a regular SIP that increases by a set percentage every year. Start at ₹10,000 a month with a 10% step-up, and you’d invest ₹11,000 a month in year two, ₹12,100 in year three, and so on.
The idea is simple: your income usually grows over time, so your investing can too. A flat SIP that felt big when you started can feel small 10 years later.
How to use this calculator
- Starting monthly SIP: what you invest each month in the first year.
- Increase every year: the percentage your SIP goes up by once a year.
- Investment period and return you assume, as in a regular SIP.
The result shows what your step-up SIP could grow to, and how that compares with a flat SIP of the same starting amount. The difference is often surprisingly large.
A worked example
Start at ₹10,000 a month, increase it 10% every year for 15 years, and assume 12% a year:
| Item | Flat SIP | Step-up SIP (10% a year) |
|---|---|---|
| SIP in the final year | ₹10,000 | ₹37,975 |
| Total invested | ₹18,00,000 | ₹38,12,698 |
| Estimated value after 15 years | ₹47,59,314 | ₹82,74,718 |
The step-up SIP could end up about ₹35 lakh higher. You put in more, of course, but much of the extra comes from the higher amounts invested in the middle years having time to grow.
How the calculation works
The calculator works month by month. Each month it adds your SIP and grows the balance at the monthly equivalent of your assumed yearly return. At the start of each new year, it raises your SIP by the step-up rate. The table below the chart shows the total invested and value at the end of every year.
Tips for using a step-up SIP
- Match it to your pay rise. If your salary grows about 8% a year, a step-up of 5 to 8% is easy to sustain.
- Start early. The earlier years matter most because that money has the longest to grow.
- Review once a year. Bonuses, a new job, or a new goal are good moments to raise your SIP further.
- Know your target. The goal SIP calculator tells you what SIP you need for a specific goal, and the retirement calculator does the same for retirement.
Step-up SIPs and a second income
A growing SIP builds a larger base for later. With Bridgit Second Income, you build for about 10 years and then take a monthly income through an SWP while the rest stays invested. A bigger base means a bigger income.
