How to Use the Goal SIP Calculator
Pick a preset goal (₹25L, ₹50L, ₹1Cr) or set your own target, your timeframe, expected return, and anything you have already invested. The calculator inverts the SIP formula to tell you the exact monthly instalment that lands on the target — and how much of the goal your money does versus what compounding contributes.
Goal SIP Calculator Formula
SIP = (T − FV_existing) × r ÷ (((1+r)^n − 1) × (1+r))T= Target corpusFV_existing= Existing savings grown to the goal dater, n= Monthly return and number of months
Example Calculation
Target ₹1 crore in 15 years at 12%, starting from zero:
SIP = 1,00,00,000 × 0.01 ÷ (((1.01)^180 − 1) × 1.01)
Required SIP ≈ ₹19,819/month — you invest ₹35.7L, growth adds ₹64.3L
Plan backwards, not forwards
Most people invest forwards: "I can spare ₹10,000 a month — what will it become?" Goal-based investing flips the question: "I need ₹1 crore for my daughter’s education in 2041 — what does that demand today?" The flip matters because it converts a vague habit into a measurable plan with a pass/fail answer, and it surfaces shortfalls while they are still cheap to fix. A ₹4,000/month gap discovered in year 2 is a minor course correction; discovered in year 12, it is a crisis.
The three levers, ranked
- Time is the strongest lever: for ₹1Cr at 12%, the SIP falls from ₹19,800 (15y) to ₹5,880 (25y) — starting early is worth more than earning more.
- Return assumptions are the most dangerous lever: planning at 15% instead of 12% cuts the required SIP by a third — and quietly converts a plan into a hope.
- The amount is the most controllable lever: automate it, step it up yearly, and revisit this calculator annually to re-baseline against actual returns.
One habit ties it together: rerun the number every year with your real portfolio value in the existing-savings field. Markets will put you ahead or behind the smooth projection; the annual re-plan converts volatility into a small SIP adjustment instead of a terminal surprise.
Frequently Asked Questions
How much SIP do I need for ₹1 crore?
At 12% expected returns: about ₹19,800/month over 15 years, ₹10,000/month over 20 years, or ₹5,880/month over 25 years. The tenure matters far more than the amount — every extra 5 years roughly halves the required SIP.
Should my target account for inflation?
Yes, if the goal is a real-world cost. A ₹50L education goal 15 years away at 6% inflation is actually ₹1.2Cr in future rupees. Inflate the goal first, then find the SIP for the inflated figure — otherwise you will reach the number but not the goal.
What return should I assume?
Use 11–12% for equity-heavy portfolios over 10+ years, 8–9% for balanced allocations, and less for shorter horizons where you should hold more debt. Assuming 15%+ turns the plan into a lottery ticket.
What if the required SIP is more than I can afford?
Three honest levers: extend the timeline, trim the target, or start with what you can and add a yearly step-up — the step-up SIP calculator shows how a 10% annual increase can close the gap without a painful start.
How do existing investments change the answer?
Money already invested compounds for the entire period, so it punches above its weight. ₹10L existing at 12% covers ₹55L of a 15-year target by itself — enter it, or you will oversave.
Assumptions & Methodology
- Instalments at the start of each month (annuity-due), compounding monthly at a constant rate — the inverse of the SIP calculator, so the two agree exactly.
- Existing savings are assumed invested at the same expected return for the full period.
- The target is in future rupees; inflate today’s goal cost first if you want a real target (see the article below).
Sources
All calculations run in your browser and are provided for information only — they are not investment, tax or legal advice. Verify current rates and rules with the official source above before acting.
Related Guides
- SSY vs PPF: Which Should You Open for Your Child?SSY pays a full point more but locks money to your daughter’s milestones. PPF is yours and flexible. The real answer is about whose goal the money serves.
- How SIP Returns Are Calculated (and Why the Maths Surprises People)Each SIP instalment compounds for a different length of time. Here is the annuity formula behind the calculator, and what XIRR on your statement actually means.