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Goal SIP calculator
Type the amount you want, the years you have and an expected return. See the monthly SIP that gets there, or the one-time amount that would.
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How to use it
- Type the amount you want to have, for example ₹1,00,00,000 (₹1 crore).
- Type the years until you need it, and the yearly return you want to test.
- If the target is a price in today’s money, such as a course that costs ₹1 crore today, set Adjust for inflation? to Yes: the calculator first works out what it will cost by then.
You get the monthly SIP needed, how much of the target is your own money and how much is growth, the one-time amount that would reach the same target, and the SIP the same target needs over other periods.
The formula
It is the SIP formula turned around. With i the monthly rate (the yearly return ÷ 1,200) and n the number of months:
Monthly SIP = target ÷ ([((1 + i)^n − 1) ÷ i] × (1 + i))
Instalments go in at the start of each month, as in the SIP calculator, so the two agree: a SIP of the amount this calculator gives reaches the target there.
Worked example
₹1 crore in 15 years, at 12% a year if that held every year:
- n = 15 × 12 = 180 months, i = 0.01.
- (1.01)^180 = 5.9958, so ((5.9958 − 1) ÷ 0.01) × 1.01 = 504.58.
- Monthly SIP = ₹1,00,00,000 ÷ 504.58 = ₹19,819.
Over 15 years the 180 instalments add up to ₹35,67,352; the other ₹64,32,648 of the target would be growth. Or, at the same return, one lumpsum of ₹18,26,963 invested today would reach ₹1 crore in 15 years.
Why the years matter more than the amount
The same ₹1 crore at the same 12% needs very different SIPs depending on the time left:
| Years | Monthly SIP |
|---|---|
| 5 | ₹1,21,232 |
| 10 | ₹43,041 |
| 15 | ₹19,819 |
| 20 | ₹10,009 |
| 25 | ₹5,270 |
| 30 | ₹2,833 |
Doubling the time from 15 to 30 years cuts the SIP to about a seventh, because the early instalments have much longer to grow. With only five years, most of the target has to come from your own money.
Inflation
If ₹1 crore is a price in today’s money, it will cost more in 15 years. At 6% inflation, ₹1 crore today becomes ₹2,39,65,582 in 15 years (₹1 crore × 1.06^15), and the SIP that reaches it is ₹47,496 a month, well over twice the ₹19,819 without inflation. Turn the switch on when the target is a today’s-price amount, such as a child’s education or a house.
What the calculator leaves out
It assumes the same return every month and every instalment paid on time. Real returns vary, so a plan built on a high return can fall short; testing a lower return, or raising the SIP every year with a step-up, leaves room for that. Exit loads, tax when you sell and the expense ratio (already inside a scheme’s published returns) are not included. Tax on equity-oriented schemes is 12.5% on long-term gains above ₹1.25 lakh a year after 12 months and 20% within 12 months; debt fund units bought on or after 1 April 2023 are taxed at your slab rate.
Questions people ask
- How much SIP do I need for ₹1 crore in 10 years?
- At 12% a year, ₹43,041 a month; at 10%, ₹48,414; at 8%, ₹54,299. A lower return needs a bigger SIP.
- Should I turn on the inflation switch?
- If the target is today’s price of something, such as a course or a house, yes: it will cost more by the time you need it. If the target is already a future amount, leave it off.
- What if the returns are lower than I typed?
- Then the same SIP falls short of the target. Planning with a lower return, or raising the SIP every year, leaves room for that.
- What does the lumpsum figure mean?
- It is the one amount that, invested today at the same return, would grow to the target by the same date.
- Can I combine a lumpsum and a SIP?
- Yes. Work out what the lumpsum grows to with the lumpsum calculator, take that off the target, and use this calculator for the rest.