How a 10% annual SIP increase changes the projection
Increasing a SIP can connect investing with a rising savings capacity. A larger ending corpus, however, reflects both additional contributions and the growth assumed on those contributions. This comparison keeps the return and holding period the same.
By INDwise · Published 29 October 2026 · Editorial policy
Illustration: ₹10,000 starting monthly SIP, 10% annual increase, 20 years
Estimated future value: ₹1,98,88,715
| Monthly investment | ₹10,000 |
|---|---|
| Annual SIP increase | 10 % |
| Expected annual return | 12 % |
| Time period | 20 years |
| Total invested | ₹68,73,000 |
| Estimated returns | ₹1,30,15,716 |
| Total value | ₹1,98,88,715 |
| Scenario | Total contributed | Projected value |
|---|---|---|
| Fixed monthly SIP | ₹24,00,000 | ₹99,91,479 |
| 10% annual SIP increase | ₹68,73,000 | ₹1,98,88,715 |
Apply the increase once each year
The step-up occurs after every 12 contributions. The second year’s monthly contribution is 10% above the first year’s, and later increases apply to the already increased amount. It is not an extra 10% of the original contribution forever.
Look at the amount you actually contribute
The comparison table separates invested money from modelled returns. The higher corpus is not evidence that the step-up strategy earns a higher market return; both cases use the same assumed nominal annual return and monthly compounding.
Keep the plan affordable
Write down future monthly commitments, not just the final corpus. If income growth slows or responsibilities change, a planned increase may be difficult to maintain. Revisit the contribution and goal periodically. The 12% return used here is illustrative and is not a promise.
Questions about this example.
Can an annual step-up replace reviewing a goal?
No. Goal costs, affordability and actual market outcomes can change independently. Use the goal calculator with an explicit inflation assumption.
Does the calculator include mutual-fund tax?
No. The projection is before taxes, charges and exit loads. It is a growth scenario rather than a redemption tax estimate.
Assumptions and references
Returns and step-ups are constant assumptions. No taxes or fees included.
Examples are computed from the same calculator functions as the interactive tools. Software checks do not constitute a personalised tax or investment review.