How this calculator works
A Step-Up SIP increases your monthly contribution by a fixed percentage every year — typically matching an annual salary raise — instead of keeping the SIP flat for the entire investment period. Each year's contribution amount compounds for its own remaining time horizon, and later (larger) contributions still benefit from compounding, just for fewer years than the earliest ones.
The practical effect: a modest, unnoticeable step-up (often 10%) can meaningfully shorten how long it takes to reach a given target corpus, compared to a SIP that never grows even as your income does.
FAQs
How much should I increase my SIP each year?
10% is a common, comfortable starting point — it roughly tracks typical salary increments, so the increase rarely feels like a lifestyle sacrifice.
Is a step-up SIP always better than a flat SIP?
For reaching a target amount sooner, yes — but only if the increases are sustainable. A step-up you can't actually maintain during a lean year is worse than a smaller, consistent flat SIP.