Goal-Based SIP Calculator
Work out the monthly SIP you need to reach a specific goal like a house, a child's education, or retirement, with inflation and step-up options.
How to Use
- 1
Enter your goal
Type the amount you need and the number of years until you need it.
- 2
Add return and inflation
Enter your expected annual return. Add inflation if your goal is in today's money.
- 3
See the monthly SIP
Check the monthly amount needed and the scenario table for lower returns.
How It Works
A goal-based SIP works backwards from what you want. Enter the amount you need, when you need it, and your expected return, and this calculator tells you the monthly SIP that gets you there. It can also adjust the goal for inflation and show how the answer changes if returns come in lower than expected.
Solving for the monthly amount
The calculator uses the same monthly compounding as the SIP calculator. Growth is proportional to the monthly contribution, so it first finds how much a ₹1 monthly SIP grows to over your period, then divides your goal by that factor. For a flat SIP, the formula is P = FV ÷ {[((1+i)ⁿ − 1) / i] × (1+i)}, where i is the monthly rate and n the number of months.
Adjusting the goal for inflation
Costs rise over time. If your goal is ₹1 crore in today's money but you won't need it for 15 years, the nominal target is bigger. At 6% inflation, ₹1 crore today becomes about ₹2.4 crore in 15 years, so planning for the today's figure would leave you short. Enter the inflation rate to plan for the future cost directly.
Why step-up changes the starting amount
With a step-up SIP, the contribution rises by a fixed percentage each year. The calculator solves for the starting amount, so the required first-year SIP is lower than a flat SIP for the same goal. Increases are assumed to happen once a year, and the step-up rate you enter must be one you can keep up.
Examples
₹1 crore in 15 years at 12% return
The required flat SIP is about ₹19,800 a month. Over 180 months you invest about ₹35.7 lakh, and the rest of the ₹1 crore, about ₹64 lakh, comes from returns.
Same goal, but ₹1 crore is in today's money at 6% inflation
The future target is about ₹2.4 crore. At 12% return over 15 years that needs roughly ₹47,500 a month, so inflation more than doubles the monthly commitment.
Lower return, higher SIP
If the same ₹1 crore target assumes 10% instead of 12%, the required flat SIP rises to about ₹23,900 a month. That's why the sensitivity table matters: a two-point drop in returns can add a fifth to your monthly commitment.
Common Use Cases
- Planning a down payment on a house by a specific year
- Building a child's education fund with a known future cost
- Working out how much to save each month for retirement at a target corpus
- Checking whether an existing SIP is enough to reach a goal, by entering the goal and comparing the result
Tips
- Use a conservative return. Equity mutual fund returns vary widely year to year, so the sensitivity table shows what your SIP needs if returns fall short.
- Revisit the plan every year. Goals change, returns differ from projections, and a small annual step-up often keeps you on track without a large jump in the monthly amount.
- Match the goal's timing to the asset. For goals only a few years away, a high equity allocation carries more risk of a shortfall than a longer horizon would.
- This calculator gives an estimate, not financial advice. For major decisions, speak to a registered financial adviser.
Frequently Asked Questions
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