What is a step-down SIP?

A step-down SIP is a strategy where your monthly investment (or SIP as % of salary) starts high and reduces by a fixed percentage each year. This works well when you expect future salary increases to keep lifestyle constant.

How does this calculator find the required SIP?

The calculator uses a goal-seeking algorithm (binary search) to find the exact starting SIP amount that will grow to your target corpus within the time horizon and constraints.

Are taxes included in this calculator?

No. Results are illustrative and do not include taxes, TDS, expense ratios, or exit loads. Consult a financial advisor for tax-optimized planning.

Step-Down SIP Goal Seeker

Determine the starting SIP needed to reach your target corpus with annual step-down reductions—ideal for salary-linked planning.

For Self Use • NEW REGIME

Inputs

Target Corpus ₹

Time Horizon Years

Expected Return (p.a.) %

Current Monthly Salary ₹

Starting SIP % of Salary Fixed: 20–60%

Min: ₹ 20,000 | Max: ₹ 60,000

Step-down Rate (% per year) %

SIP reduces by this % each year. E.g., 5% means Year 2 = Year 1 × 95%

Annual Salary Growth (%) %

SIP Selection Mode

Results

Required Starting SIP ₹ 0

As % of Salary 0%

Final Corpus Achieved ₹ 0

Total Invested ₹ 0

Total Gain (Returns) ₹ 0

SIP Year 1 (Monthly) ₹ 0

SIP Year N (Monthly) ₹ 0

Step-down Applied 0%

For illustration only. Actual returns vary by market. Consult a financial advisor.

Corpus Growth Over Time

Year-by-Year SIP Schedule

Year	Monthly SIP (₹)	Annual Contribution (₹)	Cumulative Invested (₹)	Corpus at Year End (₹)	Gain to Date (₹)

How Does a Step-Down SIP Work?

A step-down SIP is an investment strategy where your monthly contribution decreases by a fixed percentage each year. It is useful when:

You expect salary growth, so reducing SIP keeps lifestyle expenses stable
You want to maximize investments early while you have higher disposable income
You aim to reach a target corpus gradually over time

For example, if you start with ₹50,000/month and apply a 5% step-down:

Year 1: ₹50,000/month
Year 2: ₹47,500/month (₹50,000 × 0.95)
Year 3: ₹45,125/month (₹47,500 × 0.95)
And so on...

How the Goal-Seeking Algorithm Works

This calculator uses a binary search algorithm to find the optimal starting SIP amount that will reach your target corpus:

The calculator computes corpus growth for different starting SIP amounts
It narrows the search to find the minimum starting SIP that meets your goal
All amounts are bounded between 20% and 60% of your monthly salary
If your target is not reachable at the 60% cap, the calculator shows the maximum possible corpus

Final Note and Disclaimer

This calculator is for educational and planning purposes only and does not constitute financial advice. Results are illustrative and not guaranteed. Taxes, fees, charges, and market risks are not included in the calculations. Consult a qualified financial advisor before making investment decisions.