ToolForage.
INVESTING CALCULATOR

Step-Up SIP Calculator

Model monthly investments that increase once a year, with a fixed SIP for comparison.

Calculator

%
%
years
YOUR RESULTS
Projected step-up value1,369,826.45
Amount invested
956,245.48
Modeled gain
413,580.97
Fixed SIP value
914,730.18
Final-year monthly investment
11,789.74

Step-up and fixed SIP by year

Amounts use the same currency as your inputs.

Step-up valueFixed SIP value
0684.9K1.4M12345678910Year

Year 10

Monthly investment
11,789.74
Cumulative contributions
956,245.48
Step-up value
1,369,826.45
Fixed SIP value
914,730.18

Select a year to inspect its values.

Annual contribution and value schedule
Annual contribution and value schedule
YearMonthly investmentCumulative contributionsStep-up valueFixed SIP value
15,000.0060,000.0062,249.6362,249.63
25,500.00126,000.00135,890.91129,665.95
36,050.00198,600.00222,491.84202,677.79
46,655.00278,460.00323,812.81281,749.58
57,320.50366,306.00441,828.80367,384.28
68,052.55462,936.60578,754.03460,126.63
78,857.81569,230.26737,069.34560,566.54
89,743.59686,153.29919,552.65669,342.91
910,717.94814,768.611,129,312.68787,147.68
1011,789.74956,245.481,369,826.45914,730.18

Understanding your result

The step-up balance includes both additional contributions and their modeled growth. Its difference from the fixed SIP is not all investment profit: the step-up plan also requires more money from you.

For a constant monthly contribution without annual increases, use the SIP Calculator and keep the same return and timing assumptions.

The formula

Monthly payment in year y = starting payment × (1 + annual increase)^(y − 1). End-month balance = previous balance × (1 + annual return ÷ 12) + payment.

Rates in the formula are decimals. The monthly return is the nominal annual assumption divided by twelve. The installment rises at the start of years two, three, and so on; the first twelve installments are unchanged. Both plans use the same rate, duration, and payment timing.

A two-year contribution check

Start with 1,000 per month and a 10% annual increase. You contribute 12,000 in year one and 13,200 in year two, totaling 25,200. With a zero return, the final balance is exactly that total; a fixed SIP contributes 24,000.

How to use this calculator

  1. Enter the installment you can start with today.
  2. Choose the percentage increase you intend to make each year and the duration.
  3. Set a hypothetical return, then select years on the chart to compare the required payments and balances.

Plan for the future installment

A percentage step-up compounds the payment itself. After several increases, the monthly commitment can be much larger than the starting amount. Read the final-year payment before interpreting the larger portfolio value as an affordable outcome.

The fixed-SIP line answers what happens if you keep contributing the original amount. It is a cash-flow comparison, not evidence that one investing strategy earns a higher rate. Both lines receive the identical assumed return.

Assumptions & limitations

What this calculation assumes

  • Installments occur every month without interruption.
  • The increase is percentage-based and happens annually.
  • Returns remain constant and are reinvested.

What to keep in mind

  • Market losses and changing returns are not simulated.
  • Taxes, fees, fund restrictions, and actual installment dates are excluded.

Common questions

Can I use a fixed currency increase?

This version increases the previous installment by a percentage, not a fixed amount. Check whether your investment mandate uses the same convention.

Why is a zero-return case useful?

It isolates the money you would need to contribute and makes the annual step-up schedule easy to verify.

Sources & further reading