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How the corpus is calculated when your monthly SIP increases every year by a fixed step-up percentage.

Monthly SIP for Year y

P_y = P₀ × (1 + s)^{y − 1}

Total Corpus (Sum across all years)

M = Σ_{y=1 to Y} P_y × { [(1 + r)^12(Y−y+1) − 1] / r } × (1 + r)

Each year's stepped-up SIP is compounded for its remaining months, then summed.

What Each Variable Means

P₀

Initial Monthly SIP

Your starting SIP amount in Year 1

Annual Step-Up Rate

% increase in monthly SIP each year (e.g. 10% → 0.10)

Monthly Return Rate

Annual expected return ÷ 12

Total Years

Full investment tenure in years

Year Index

Each individual year from 1 to Y, calculated separately

Total Corpus

Sum of all year-wise compounded SIP values

Worked Example

Starting SIP of ₹5,000/month with a 10% annual step-up at 12% p.a. for 5 years:

Year 1: ₹5,000/month → Year 2: ₹5,500 → Year 3: ₹6,050 → Year 4: ₹6,655 → Year 5: ₹7,321

Each year's SIP amount is compounded for its remaining duration and all values are summed:

₹4,96,370 vs ₹4,12,431

Step-Up vs Flat SIP over 5 years @ 12% p.a.
Step-up creates ~20% more wealth with the same starting amount