Why a step-up works so well
A flat SIP is a shrinking commitment. The amount stays the same while your income and your costs rise, so its share of your earnings falls every year.
A step-up SIP raises the instalment by a set percentage annually — usually timed to your appraisal. Because the increase comes out of a raise rather than the existing budget, it is rarely felt, and the effect on the final corpus is substantial.
Choosing the percentage
A step-up slightly below your expected annual increment is generally sustainable. Ten per cent is a common starting point. The calculator shows exactly what the difference is worth against a flat SIP over the same period, at the same rate.
Most fund platforms allow a step-up to be registered once, after which it applies automatically each year without further paperwork.