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Goal SIP Calculator

Start from the goal, not the SIP. Enter what the goal costs in today's rupees, when you need it, and what you have already saved, and the calculator works out the monthly SIP that gets you there, a step-up version that starts lower, and the one-time lumpsum that would do the same job.

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Calculator and results

A goal costing ₹25,00,000 today will cost about ₹44,77,119 in 10 years at 6% inflation. At an assumed 12% return you need a monthly SIP of ₹19,270, or ₹14,41,513 invested once today.

₹

What the goal would cost if you bought it today. Inflation is added below.

yrs
%

An assumption. Use a higher figure for goals like education or healthcare.

%

An assumption, not a promise. Short goals usually suit lower-risk, lower-return funds.

₹

Required monthly SIP

₹19,270

for 10 years

Goal value at the time

₹44,77,119

₹25,00,000 today

Or a lumpsum today

₹14,41,513

one-time, on top of existing savings

Existing savings at goal date

₹0

grown at 12%

Total you put into the SIP

₹23,12,400

The SIP is rounded up to the next rupee and assumes instalments at the start of each month, the same convention as our SIP calculator.

SIP path to the goal
After 10 years: put in ₹23,12,400, goal fund ₹44,77,174.₹0₹20 L₹40 L₹60 LYr 0246810
Year 10Put in ₹23.12 LGrowth ₹21.65 LGoal fund ₹44.77 L
Year by year
Year by year
YearPut in to dateGoal fund
1₹2,31,240₹2,46,836
2₹4,62,480₹5,24,976
3₹6,93,720₹8,38,392
4₹9,24,960₹11,91,557
5₹11,56,200₹15,89,512
6₹13,87,440₹20,37,938
7₹16,18,680₹25,43,235
8₹18,49,920₹31,12,617
9₹20,81,160₹37,54,210
10₹23,12,400₹44,77,174

Saved scenarios stay in this browser only. No sign-up.

Required monthly SIP

₹19,270

Goal ₹44,77,119
What it is:
A reverse SIP calculator: it starts from a goal and works out what to invest.
What it calculates:
The goal's future cost after inflation, the monthly SIP needed to reach it, a step-up SIP alternative and the one-time lumpsum equivalent.

Key Assumptions

  • Inflation and the expected return are constant every year, which no real economy or market delivers.
  • SIP instalments are invested at the start of each month at the annual return divided by 12.
  • Existing savings and the lumpsum compound once a year at the expected return.
  • No tax, expense ratio or exit load is deducted.

How does the Goal SIP Calculator work?

A goal priced today will cost more when you reach it. The calculator first grows the target at the inflation rate you enter, compounded once a year, to get the amount you will actually need on the goal date.

Savings you have already set aside for the goal are grown at the expected return and subtracted. Whatever is left is the shortfall the SIP has to fill. If your savings alone get there, the required SIP is zero.

The required SIP is solved backwards using the same convention as our SIP calculator: instalments invested at the start of each month, at the annual return divided by 12. Put the answer into the SIP calculator and it reaches the goal. The figure is rounded up to the next rupee so it never falls short.

The step-up option finds the starting SIP that, raised by a fixed percentage on each anniversary, reaches the same goal. It starts lower than the flat SIP and ends higher, which suits a salary that rises over time.

The lumpsum alternative is the shortfall discounted back to today at the expected return, compounded annually: the single amount that, invested now alongside your existing savings, grows to the goal.

Goal SIP Calculator formula

Goal = C x (1 + g)^t; SIP = (Goal - S x (1 + r)^t) / ([((1 + i)^n - 1) / i] x (1 + i))

C
= cost of the goal in today's rupees
g
= inflation per year, as a decimal
t
= years to the goal
S
= savings already set aside for the goal
r
= expected annual return, as a decimal
i
= monthly return = annual return / 12 / 100
n
= number of monthly instalments = t x 12

The denominator is the start-of-month SIP factor: the value one rupee a month grows to. The lumpsum alternative is (Goal - S x (1 + r)^t) / (1 + r)^t.

Goal SIP Calculator: worked example

A ₹25,00,000 goal (today's rupees) in 10 years, ₹2,00,000 already saved

Inflation assumed
6%
Expected return assumed
12%
Goal value in 10 years
₹44,77,119
Existing savings grown
₹6,21,170
Shortfall to fund
₹38,55,950
Required monthly SIP
₹16,597
Step-up SIP (+10% a year), starting at
₹11,428
Or a one-time lumpsum today
₹12,41,513

Goal SIP Calculator: frequently asked questions

Why does the goal amount go up?
Because prices rise. A car, a wedding or a course that costs ₹25 lakh today will cost more in ten years. Planning for today's price is the most common reason goals fall short, so the calculator inflates the target first and then works out the SIP for the inflated figure.
What inflation rate should I use?
It depends on the goal. General consumer inflation is a reasonable starting point for a holiday or a car. Education and healthcare costs have often risen faster than general prices, so a higher figure is safer for those. Whatever you choose is an assumption; try a figure one or two points higher to see how much buffer you would need.
Should I choose the flat SIP or the step-up SIP?
A step-up SIP starts lower and rises every year, so it is easier on today's budget, but you pay more in total because the larger instalments come later and have less time to grow. If your income is likely to rise and you will actually raise the SIP each year, step-up is realistic. If not, the flat SIP is the safer commitment.
Why is this SIP slightly different from other goal calculators?
Usually because of the timing convention. This page assumes each instalment is invested at the start of the month, the same as our SIP calculator, so one month's growth is counted that an end-of-month calculator leaves out. The SIP here is also rounded up to the next rupee so it reaches the goal rather than falling a few rupees short.
What return should I assume for a short goal?
A lower one. Equity funds can fall sharply in any given year, and a goal three years away does not have time to recover from a bad patch. Many people use debt or hybrid funds for goals under five years, which means a lower expected return and a higher SIP. Use the return of the kind of fund you will actually hold.

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Reviewed by Pradipta Ray, MBA (Finance) · Updated