About the Goal SIP Calculator
Have a target in mind, such as a child's education, a home down payment or a car? This goal SIP calculator works backwards to show the monthly SIP you need, after allowing for inflation and the savings you have already set aside.
How to use this calculator
- Enter the goal amount in today's money.
- Set the years until you need the money and the expected return.
- Enter expected inflation so the goal is adjusted to its future cost.
- Add any savings already set aside for this goal.
Formula
Future goal = goal × (1 + inflation)^years. Your existing savings are grown at the expected return. The shortfall is divided by the SIP growth factor [(1 + i)^n − 1] / i × (1 + i) to get the monthly SIP.
Example
A goal worth ₹50 lakh today, needed in 10 years with 6% inflation, will cost about ₹89.54 lakh. With ₹2 lakh already saved and an assumed 12% return, the monthly SIP needed is about ₹35,866.
Frequently asked questions
Why include inflation?
Prices rise over time, so a goal costing ₹50 lakh today will cost more in future. Ignoring inflation usually leads to saving too little.
What if I already have enough savings?
If your current savings are expected to grow past the future goal, the calculator shows a monthly SIP of zero.
Should I use the same return for every goal?
Not necessarily. Short-term goals are usually kept in lower-risk options with lower expected returns.
These results are estimates for illustration and education only, not investment advice.