How much difference does increasing my SIP by ₹5,000 make?

At 12% a year, raising a ₹20,000 SIP to ₹25,000 for 20 years adds about ₹50 L, for ₹12 L more put in.

Is it better to increase my SIP now or later?

Now. The same ₹5,000 a month started 5 years later adds about ₹25.2 L by year 20 instead of ₹50 L, because the first years of a SIP have the longest to compound.

Should I increase my SIP every year?

If your income rises, yes. A ₹20,000 SIP raised 5% every year grows to about ₹2.7 Cr in 20 years, more than a one-time raise to ₹25,000.

Can I increase my existing SIP amount?

Most fund houses don't let you change an existing SIP's amount; you start a second SIP for the extra, or set a top-up (step-up) when you start one. Check with your fund house or platform.

What happens if you increase your SIP by ₹5,000?

Raising a ₹20,000 SIP to ₹25,000 adds about ₹50 lakh in 20 years at 12%. Start it 5 years later and it adds half that. See the maths and the step-up option.

8 Oct 20265 min read

You invest ₹20,000 a month in a SIP. You can find another ₹5,000. Is it worth it?

At 12% a year for 20 years, the extra ₹5,000 a month adds about ₹50 L to your corpus. You put in ₹12 L of that; compounding does the rest.

What the extra ₹5,000 does

Figure 1 from the SIP calculator

₹25,000 a month against ₹20,000, for 20 years

How to read it

1The extra ₹5,000 a month adds ₹50 L by year 20: 4.2 rupees for each rupee you put in.

Open this scenario in the SIP calculator

The gap between the two lines is small for years and then widens fast. That's compounding: the returns from the extra money start earning returns of their own. Why the last five years of a SIP matter most explains the shape.

How long it runs matters most

Figure 2 from the SIP calculator

What ₹5,000 a month more adds, by how long it runs

How to read it

1The darker part is what you put in; the rest is growth. Over 25 years, growth is about 5× what you put in.

Open this scenario in the SIP calculator

₹5,000 a month more at 12% a year
For	You put in	It adds
10 years	₹6 L	₹11.6 L
15 years	₹9 L	₹25.2 L
20 years	₹12 L	₹50 L
25 years	₹15 L	₹94.9 L

Now or later?

Starting the extra ₹5,000 today, rather than in 5 years, nearly doubles what it adds by year 20: ₹50 L against ₹25.2 L. The early years cost the least to fund and have the longest to grow.

A one-time raise, or a raise every year?

A fixed ₹5,000 raise is one decision. A step-up, raising the SIP a little every year as your pay rises, keeps going. ₹20,000 a month raised 5% a year reaches ₹2.7 Cr in 20 years, against ₹2.5 Cr for a flat ₹25,000. Step-up vs regular SIP shows more.

Try it with your numbersSIP Calculator

Change the monthly amount, the years and the step-up. The chart shows what each change adds.

Before you increase it

Emergency fund first. Keep a few months of expenses aside so you never have to stop the SIP. How many months to keep.
Clear costly debt. A credit card at 36% beats any SIP; pay off debt or invest explains why.
Know what it's for. How much to invest in a SIP every month works back from a goal.

What this doesn't mean

12% isn't guaranteed. Equity returns vary a lot from year to year; the chart uses a steady average.
Tax comes off at the end. Equity gains above ₹1.25 lakh a year pay 12.5% LTCG when you sell.
Most platforms won't change an existing SIP's amount. You usually start a second SIP for the extra.

SIP invested at the start of each month at 12% a year. For illustration only, not investment advice.