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Step-Up SIP Calculator
What raising your instalment each year does to the final corpus.
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Result
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A flat SIP ignores the fact that your income rises. A step-up raises the instalment once a year, usually in line with an appraisal, and it is the easiest fix for a plan that is falling short.
Why it works so well
The increases arrive early enough to compound, and they come from income you have not yet adjusted your lifestyle around. A 10% annual step-up on ₹20,000 a month over 20 years can add more than the original plan's entire gain.
How to set it up
Most fund platforms support an automatic annual step-up at registration. Setting it once removes the decision from every subsequent year, which is the point — the plans that fail are the ones that need a fresh decision every April.
A sensible rate
Match it to expected salary growth, usually 8% to 10%. Anything much higher looks impressive here and tends to be abandoned by year four.
Frequently asked questions
What is a step-up SIP?
A SIP where the instalment increases automatically each year, usually by a set percentage. It lines the plan up with salary growth instead of leaving the contribution frozen at the figure you could afford when you started.
How much should I step up each year?
Match expected salary growth, usually 8% to 10%. Higher figures look impressive in a projection and tend to be abandoned by year four, which defeats the purpose.
Is a step-up better than increasing the return assumption?
Far better, because it is within your control. Raising the instalment 10% a year typically adds more to a 20-year corpus than one or two percentage points of extra return — and no fund can guarantee the latter.
Can I set this up automatically?
Most fund platforms and AMCs support an automatic annual step-up at registration. Setting it once removes the decision from every subsequent year, which is the point.