Goal SIP Calculator
Work backwards from a goal such as a child's education or a home down payment. The calculator inflates the cost to the target date, subtracts what your current savings will grow to, and finds the SIP that closes the gap.
Results
Monthly SIP needed
₹11,188
- Goal cost at the target date
- ₹40,24,393
- Existing savings grow to
- ₹4,19,062
- Amount still to build
- ₹36,05,331
- Total SIP invested
- ₹16,11,060
To reach a goal that will cost ₹40,24,392.94 in 12 years, invest about ₹11,187.92 a month.
Show the calculation steps
- Goal cost in 12 years = ₹20,00,000.00 × (1 + 6%)^12 = ₹40,24,392.94.
- Existing savings grow to ₹1,00,000.00 × (1 + i)^144 = ₹4,19,061.56.
- Amount still needed = ₹36,05,331.38.
- Monthly SIP = gap × i ÷ (((1 + i)^n − 1) × (1 + i)) = ₹11,187.92, with i = 1% and n = 144.
- The goal is inflated at the rate you enter. Returns are not guaranteed, so consider a margin of safety.
Plan in future money
A goal that costs ₹20 lakh today will cost much more in twelve years. Including inflation gives a target that will actually be enough, rather than one that sounds right today.
Ways to lower the SIP
Start earlier, start with a lump sum, extend the timeline or reduce the goal cost. The SIP falls sharply if you have more time.
Formula
Future goal cost = Cost today × (1 + inflation)^years
Gap = Future goal cost − savings × (1 + i)^n
SIP = Gap × i ÷ (((1 + i)^n − 1) × (1 + i))
Where:
- i
- = Monthly return
- n
- = Number of months
Example calculation
₹20 lakh goal in 12 years at 6% inflation and 12% return, ₹1 lakh saved
Inputs
- Goal Cost Today
- ₹20,00,000
- Years to Goal
- 12 years
- Expected Inflation
- 6 %
- Expected Annual Return
- 12 %
- Existing Savings for This Goal
- ₹1,00,000
Result
- Monthly SIP needed
- ₹11,188
- Goal cost at the target date
- ₹40,24,393
- Existing savings grow to
- ₹4,19,062
- Amount still to build
- ₹36,05,331
- Total SIP invested
- ₹16,11,060
Step-by-step
- Goal cost in 12 years = ₹20,00,000.00 × (1 + 6%)^12 = ₹40,24,392.94.
- Existing savings grow to ₹1,00,000.00 × (1 + i)^144 = ₹4,19,061.56.
- Amount still needed = ₹36,05,331.38.
- Monthly SIP = gap × i ÷ (((1 + i)^n − 1) × (1 + i)) = ₹11,187.92, with i = 1% and n = 144.
Important notes
- Results are estimates based on the values you enter. They assume the rates stay constant and exclude taxes and fees unless stated.
Disclaimer: This calculator provides estimates for informational purposes and should not be considered financial advice. Actual figures from lenders, banks and investment products can differ because of fees, taxes, rounding rules and changing rates. Consult a qualified professional before making financial decisions.
Frequently asked questions
Why include inflation?
Costs rise over time, so the amount you need later is higher than today's price.
What if my existing savings already cover the goal?
The SIP shows 0 and the summary tells you the savings are enough.
Is the return guaranteed?
No. Use a cautious return and revisit your plan each year.
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