A Step-Up Systematic Investment Plan (SIP) is a smart investment strategy that lets you periodically increase your SIP contributions, usually annually. This approach aligns your investments with your growing income, combining the power of regular SIPs with an automatic increment feature to boost wealth creation over time.
The Step-Up SIP calculator uses a modified SIP formula that factors in annual increments. Here’s the breakdown:
Yearly Amount = P × [(1 + s)^(y-1)]
Where:
P = Initial monthly investment amount
s = Annual step-up rate (in decimal form)
y = Current investment year
Note: Each year’s SIP contribution is compounded separately
for accurate growth projections.
Automatically adjusts your SIP amount as your salary increases.
Leverages compounding with rising investments for accelerated returns.
Keeps your investment value strong against rising costs.
Ideal for systematically achieving big milestones.