Goal SIP Calculator
Enter your financial goal, when you need the money, and what you've already saved. The calculator tells you the exact monthly SIP you need — adjusted for inflation.
To reach a goal of ₹25.0 lakh in today's money (₹39.8 lakh inflation-adjusted) in 8 years, you need to invest approximately ₹24,669/month at 12% a year. Returns are not guaranteed: real fund returns go up and down.
Assumes payments at the start of each month (annuity due). Inflation adjusts the target corpus; existing savings compound at the same return rate and reduce the SIP required.
What is a goal SIP calculator?
A goal SIP calculator works in reverse from a standard SIP calculator. Instead of showing how much your SIP grows to, it starts with your target — say ₹25 lakh for a child's college education in 10 years — and tells you how much to invest every month to get there. It accounts for inflation (because ₹25 lakh today will cost more in 10 years) and for savings you've already accumulated.
Why do you need to adjust for inflation?
Because ₹25 lakh today does not buy ₹25 lakh worth of goods or services in 10 years. At India's average CPI inflation of 5–6%, prices roughly double every 12 years. A college education that costs ₹20 lakh today will cost approximately ₹35.8 lakh in 10 years at 6% inflation. If you target ₹20 lakh without inflation adjustment, you will be short by ₹15.8 lakh.
The calculator inflates your target automatically:
Future value of goal = Today's cost × (1 + inflation rate)years
Goal SIP formula
Once the inflation-adjusted target is known, the monthly SIP is calculated using the future value of an annuity due (payments at the start of each month):
Monthly SIP = Adjusted Target ÷ [((1 + r)n − 1) ÷ r × (1 + r)]
Where:
- r = monthly return rate = annual return ÷ 12 ÷ 100
- n = total months = years × 12
If you already have savings towards this goal, those savings compound separately:
Future value of existing savings = Savings × (1 + annual return)years
The SIP only needs to cover the remaining gap.
Worked example
- Goal: ₹25 lakh in today's money for child's education in 10 years
- Inflation: 6% → Adjusted target: ₹44.8 lakh
- Existing savings: ₹5 lakh → Grows to ₹8.95 lakh in 10 years at 12%
- Net SIP target: ₹44.8L − ₹8.95L = ₹35.85 lakh
- Monthly SIP needed: ≈ ₹16,000/month at 12% for 10 years
How much SIP for common goals in India?
At 12% expected return and 6% inflation:
| Goal | Today's cost | In 10 years | Monthly SIP needed |
|---|---|---|---|
| Child's UG education | ₹20 lakh | ₹35.8 lakh | ≈ ₹16,000 |
| House down payment (20%) | ₹15 lakh | ₹26.9 lakh | ≈ ₹12,000 |
| Wedding (in 5 years) | ₹15 lakh | ₹20.1 lakh | ≈ ₹25,000 |
| Retirement corpus (in 25 years) | ₹2 crore | ₹8.58 crore | ≈ ₹24,000 |
These are approximations. Use the calculator above for your exact numbers.
How does existing savings reduce the SIP needed?
If you've already saved money towards a goal, that lump sum keeps compounding independently while your SIP runs alongside it. For example, if you have ₹5 lakh already saved and expect 12% returns, that ₹5 lakh grows to ₹8.95 lakh over 10 years — reducing the amount your SIP needs to cover by ₹8.95 lakh. The more you've already saved, the smaller your monthly SIP needs to be.
What return rate should I assume?
For long-term goals (10+ years): 12% is a reasonable estimate for a diversified equity mutual fund SIP, based on the Nifty 50's historical 15-year CAGR. For medium-term goals (5–8 years): use 10–11% (a more conservative estimate or a balanced fund). For short-term goals (under 3 years): use 7–8% (debt funds or liquid funds, since equity is too volatile for short durations). SEBI regulations require all mutual funds to include the disclaimer that past returns do not guarantee future performance.
When to use a different calculator
- Already know your monthly SIP and want to see the final corpus: SIP Calculator
- Want to reach ₹1 crore specifically: Crorepati Calculator
- Planning to increase your SIP each year: Step-Up SIP Calculator
- Investing a lump sum instead: Lumpsum Calculator
- Planning withdrawals in retirement: SWP Calculator
Sources
- AMFI: mutual fund NAVs and investor information (Association of Mutual Funds in India)
- SEBI investor education (Securities and Exchange Board of India)
- MoSPI: consumer price index data (Ministry of Statistics, Government of India)
This is general information, not tax or investment advice. See how we check rates and our corrections log.