SIP Step Up Calculator — Annual-Increment Mutual Fund SIP — FY 2026-27

A Step-Up SIP (also called Top-Up SIP) automatically increases your monthly SIP amount every year by a pre-set percentage — typically 5%, 10%, or 15%. The step-up takes effect on your SIP anniversary. The goal: match your increasing salary, so the SIP remains a consistent share of income rather than shrinking over time.

For ₹10K monthly SIP at 12% over 20 years: flat SIP = ₹1.00 crore, 10% step-up SIP = ₹1.88 crore — an extra ₹88 L. For a 15-year horizon: flat ₹46.4 L vs 10% step-up ₹73.8 L. The gap widens with longer tenure because each year's extra deposit compounds for more time.

Rule of thumb: match your expected annual salary growth minus inflation. Mid-career professionals see ~7-10% nominal salary growth; pick 7-10% step-up. Young professionals (25-35) expecting 10-15% raises should pick 12-15% step-up. Older professionals (45+) with slower raises might pick 5%. Don't overcommit — you want to realistically sustain it.

Yes. You can pause the SIP (most fund houses allow 6-month pause), reduce the step-up percentage, or convert back to a flat SIP at any anniversary. Unlike FD premature withdrawal, there's no penalty — mutual funds are fully liquid. Use this flexibility in years of career disruption or high-expense phases (home purchase, medical).

No. All SIP units (step-up or flat) follow the same tax rules: equity funds get LTCG at 12.5% above ₹1.25 L exemption (post Budget 2024), STCG at 20%. Debt funds bought post-1-Apr-2023 are slab-rate under Section 50AA. The step-up mechanism has no tax implication — only total invested amount and gains matter.