Skip to main content

Step-Up SIP Calculator

A flat instalment shrinks in real terms every year your income grows. Compare it against one that rises annually, using your own assumption.

₹
%
Applied from the second year onwards.
%
This is your assumption, not a promise.
years
years
0 means keep increasing throughout.
Please read this. Every figure above comes from the rate you typed in. Mutual fund returns are market-linked, do not arrive evenly year by year, and nothing here is promised or predicted. Exit load and tax are not included. Myfolios is an AMFI-registered mutual fund distributor (ARN-145870) and not an investment adviser.

Why the comparison matters more than the number

Ask a long-term investor what they would change and it is almost never the scheme. It is that they would have raised the instalment sooner. This calculator exists to make that visible: the same starting amount, the same assumption, and the only difference being whether the instalment moved with your income or stayed where you set it.

Look at the two right-hand columns rather than the headline figure. The gap between them is not produced by better selection or better timing. It is produced entirely by a decision you can make once and then stop thinking about.

The thing that blocks it in practice

The most common reason a step-up fails is not affordability. It is the e-NACH mandate ceiling. Many people set that ceiling equal to their starting instalment because it looks tidy, and the increase then tries to debit more than the authorisation allows.

Set the ceiling well above where you start, high enough to absorb years of increases. It is a limit rather than a commitment and nothing extra is ever debited. Our page on step-up SIPs covers the mechanics, including what to do when an existing SIP has no step-up registered.

A rule that works better than a percentage

Percentages are easy to model and hard to keep. The rule our clients find easiest is to tie the increase to an event instead: half of every salary increment goes into the instalment before it reaches the spending account, or a decided share of surplus after a strong season for business income.

The other event worth using is a commitment ending. The month a school fee stops or a loan finishes, that money is still in the budget and nothing is claiming it. Redirect it the same month; wait six and it is absorbed into ordinary spending permanently.

Before increasing anything, make sure the emergency buffer exists, as our page on building an emergency fund sets out. And if you want to model a plain instalment instead, the SIP calculator is next door.

Step-Up SIP Calculator — Frequently Asked Questions

A step-up or top-up SIP raises your monthly instalment automatically at a set interval, usually once a year, by a fixed percentage or amount. The point of registering it is that the increase happens without you deciding again, which is why it survives where an annual intention usually does not.

There is no correct figure, and tying it to an event works better than picking a percentage. Half of every salary increment, moved before the money reaches your spending account, keeps the instalment growing with your actual income rather than with an assumption you made years earlier.

No. The calculator applies the rate you type in to the instalment schedule you set. Mutual fund returns are market-linked, vary from year to year, and no outcome shown here is promised or predicted. Run it at a lower rate to see how the plan holds up.

Almost always because the e-NACH mandate ceiling is too low to authorise the higher debit. Set the ceiling well above your starting instalment, high enough to absorb years of increases; it is a limit rather than a commitment and nothing extra is ever debited.

A fixed amount is predictable and easy to plan around, while a percentage grows faster in later years. Neither is better in general. What matters more is registering it at setup, since adding a step-up to an existing SIP is usually a modification rather than a simple toggle.

Often yes, though requirements differ by fund house. The alternatives are modifying the instalment manually each year or starting a second SIP alongside the first for the increase. What we would avoid is stopping the existing SIP to start a bigger one, since that creates a gap.

Aur koi sawaal hai? AMFI-registered distributor (ARN-145870) se seedhe poochho.

Ask on WhatsApp