Worked example
Example with the default numbers — change them above.
Goal amount: ₹1,00,00,000 · Time to reach the goal: 15 yrs · Assumed return (a year): 12%
To reach ₹1 Cr in 15 years at 12% a year, invest about ₹21,011 a month. Roughly ₹37.82 L comes from your own money and ₹62.18 L from growth.
| Monthly SIP needed | ₹21,011 · every month for 15 years |
|---|---|
| Money you put in | ₹37.82 L · 38% of the final value |
| Growth | ₹62.18 L · 62% of the final value |
| Goal in today's money | ₹41.73 L · after 6% yearly inflation |
How the Goal SIP Calculator works
- Enter the goal amount, the years you have and the yearly return you assume. Add existing savings, a yearly step-up or an inflation adjustment under advanced options if they apply.
- If your goal is in today's money, the calculator raises it by inflation to find the amount you will need in future rupees.
- It grows your existing savings to the end of the period and takes that away from the goal. The rest must come from the SIP.
- Growth is proportional to the SIP amount, so the monthly SIP is the shortfall divided by what ₹1 a month grows to. This gives an exact answer, not a guess.
- The result is shown as a SIP amount, your total contribution and the growth that makes up the rest of the goal.
Monthly SIP needed
SIP = (Goal − Savings × (1 + R)) ÷ Growth of ₹1 a month
Growth of ₹1 a month = ((1 + i) ^ n − 1) ÷ i × (1 + i)
R = growth factor of existing savings over the period
i = monthly rate = (1 + yearly return) ^ (1 ÷ 12) − 1
n = number of monthsAssumptions and limits
- The yearly return is converted to a monthly rate so that twelve months compound to exactly your yearly figure (12% a year is about 0.949% a month). Calculators that simply divide the yearly rate by 12 (1% a month) show higher numbers for the same inputs: about 4% more after 10 years, 15% more after 30 years and over 20% more after 40 years.
- Each SIP instalment is invested at the start of the month, and the return is the same steady rate every month.
- A step-up, if you choose one, raises the SIP once a year by the same percent. The first-year SIP shown is the one to start with.
- Market returns are not fixed or guaranteed. Real investments rise and fall, so treat the result as an illustration at one steady rate, not a forecast.
- Enter returns after fund charges: a fund's published returns already have its expense ratio taken out. Exit loads and taxes on gains are not deducted, and they lower what you actually take home.
- Inflation is one steady yearly rate that you choose. Real inflation varies, and costs such as education may rise at a different pace.
Frequently asked questions
How do I calculate the monthly SIP needed for a goal?
Work out what ₹1 invested each month would grow to over your period at your assumed return, then divide your goal by that figure. At 12% a year over 15 years, ₹1 a month grows to about ₹476, so a ₹1 crore goal needs about ₹21,000 a month. This calculator does that exactly, with savings, step-up and inflation if you choose.
Should I enter my goal in today's money or future money?
If you know what the goal costs today, such as a course fee, switch on today's rupees. The calculator then raises it by inflation, because the price will be higher when you pay. If you already have a future figure in mind, leave the option off. Entering today's price as a future amount understates what you will need.
What if I cannot afford the SIP amount shown?
You can change the plan. A longer period lowers the monthly amount a lot, a yearly step-up lets you start smaller, existing savings reduce the shortfall, and a smaller goal needs less. Raising the assumed return lowers the SIP on paper but adds risk, so test lower returns too before settling on a plan.
How does a step-up change the SIP needed?
A step-up raises your SIP each year, so you can start with a smaller amount and still reach the same goal. For a ₹1 crore goal in 15 years at 12%, a flat SIP is about ₹21,000, while a 10% yearly step-up needs a starting SIP of roughly ₹12,100. You pay more in later years, when your income may also be higher.
What return should I assume for a goal?
No return is guaranteed. Try several rates and plan on the lower ones. For goals only a few years away, market-linked investments can fall just before you need the money, so people often use a lower, safer rate. For long goals a wider range is reasonable. Use a rate that matches where the money will actually be invested.
Can I use this for education, a wedding or a home down payment?
Yes. Any goal with an amount and a date works. Enter the cost, the years until you need it, and switch on today's rupees if the cost is today's price. For short goals use a conservative return. The yearly schedule shows how much you should have after each year, so you can check your progress.
Sources
Logic and rates last verified on .
Next step: related calculators
-
Investing SIP Calculator
How much will my monthly SIP grow to?
-
Investing Step-Up SIP Calculator
How much more will I build if I raise my SIP every year?
-
Investing Lumpsum Calculator
How much will a one-time investment grow to?
-
Savings & deposits Inflation Calculator
What will things cost later, and what is future money worth today?
Guides that go deeper
See worked examples
The monthly SIP needed for goals from ₹10 lakh to ₹5 crore over 3 to 30 years.
- How much SIP is needed to reach ₹10 lakh in 3 years? — SIP ₹23,213 a month
- How much SIP is needed to reach ₹10 lakh in 5 years? — SIP ₹12,330 a month
- How much SIP is needed to reach ₹10 lakh in 7 years? — SIP ₹7,764 a month