How Step-up SIP Is Calculated: Monthly Contributions and Annual Step-up

The calculator models each month in sequence

The starting monthly investment is added at the beginning of the month. The entered annual return is converted to a monthly rate, and the balance plus that month's contribution is compounded using that rate.

Use the Step-up SIP Calculator to inspect the same inputs.

The engine keeps full internal floating-point precision. Existing Indian-currency formatting controls what is displayed.

The first annual step-up applies after the first 12-month block

Months 1 through 12 use the starting contribution. At the beginning of month 13, the monthly contribution increases by the entered annual step-up percentage. The same timing repeats after each completed 12-month block.

This means the annual increase changes future contributions; it does not retroactively change earlier monthly investments.

The 10-year example separates capital from projected growth

Using a starting monthly contribution of ₹5,000.00, a 10% annual step-up, a 12% entered annual return and 10 years, the engine returns the following values.

The calculation does not model changing market returns or investor behavior

The engine uses one constant entered return and a fixed annual contribution schedule. It does not model fees, taxes, pauses, missed payments, withdrawals, variable returns or fund performance.

For interpretation limits, read Step-up SIP Projection Assumptions. The existing Fixed SIP vs Step-up SIP article covers the comparison intent.