Plan Annual SIP Contribution Increases
Check the cash commitment created by an annual SIP increase before comparing projected investment balances.
Use the interactive tool ↓Budget the increase before the return
An annual step-up changes how much you invest, not just how much a projection grows. A 10% step-up means the next year’s monthly deposit is 110% of the previous year’s monthly deposit. It is not a ten-percentage-point increase in expected investment return.
Step-up SIP Calculator
Your monthly SIP increases by this % every year.
Estimated maturity value
₹33,74,326
Work through two years of deposits
Suppose the initial monthly SIP is ₹1,000 and the annual step-up is an assumed 10%. Twelve first-year deposits total ₹12,000. The next twelve deposits are ₹1,100 each and total ₹13,200. Across two years, the contributions are ₹25,200.
Set return to zero to isolate that contribution schedule: the projected balance should also be ₹25,200. With a positive assumed return, the difference between projected balance and contributions is hypothetical growth. It is not all attributable to the step-up percentage.
- Enter initial monthly contribution, annual increase, assumed return and years.
- Check the invested total at zero return.
- Add a return assumption only after checking the budget.
- Compare against a flat SIP using the same start amount and term.
Understand the timing model
The implementation increases the monthly deposit after each completed block of twelve months. Each deposit receives growth from the beginning of its month to the end of the model. It divides the annual return by twelve and rounds the overall period to whole months. Fractional final years therefore include only the model’s rounded number of deposits.
The tool caps the entered term at 100 years. That interface limit is not a recommendation to use extremely long projections: small assumption differences become large over long periods.
Troubleshoot an ambitious projection
Check whether the step-up is affordable in later years. The contribution grows by multiplication each year, so a fixed annual salary increase is not automatically a matching SIP increase. Neither a flat nor stepped schedule guarantees a return.
Fees, tax, inflation, skipped payments and actual market losses are outside this model. SIP Calculator provides a useful flat-contribution comparison; retain both contribution totals when interpreting the difference.