Reviewed October 2026
How a step-up SIP works
A step-up SIP (also called a top-up SIP) raises your monthly instalment by a fixed percentage every year — usually in line with your salary hikes. Most mutual funds let you set this up once when you start the SIP.
Because the larger instalments come later, a step-up SIP builds far more wealth than a flat SIP without feeling heavier on your budget today.
How the calculator computes it
Each year's monthly amount is the starting SIP × (1 + step-up %)^(year − 1). Every instalment is invested at the start of the month and compounds monthly at annual return ÷ 12 — the same convention as the regular SIP calculator, so a 0% step-up gives exactly the regular SIP result.
Worked example
Start a ₹10,000 SIP, raise it 10% every year, and assume 12% returns for 20 years. You invest about ₹68.7 lakh in total and the projected value is about ₹1.99 crore.
A flat ₹10,000 SIP over the same 20 years grows to about ₹99.9 lakh. The step-up roughly doubles the outcome.
Frequently asked questions
What step-up percentage should I choose?
Matching your expected salary increase is a good rule — 5–10% a year for most people. Even 5% makes a large difference over 15–20 years.
Can I change the step-up later?
Yes. Most AMCs let you stop or change the top-up, or you can start an additional SIP. The calculator assumes a constant step-up for simplicity.
Is step-up SIP better than a regular SIP?
It invests more money over time, so it usually ends higher. If you can't increase your investment, a regular SIP is still a great habit.