Target SIP Calculator
Work backwards from a financial goal to find the monthly SIP you need to reach it.
The target SIP calculator answers the most practical investing question: how much should I invest every month to reach my goal? Enter the goal amount, the time you have and the return you expect, and it works back to the monthly SIP needed.
How to use the calculator
- Enter your goal amount — a crore, a house down payment, a child\u2019s education fund.
- Set the expected annual return for your chosen fund category.
- Choose how many years you can stay invested.
- The result is the monthly SIP, plus how much of the goal comes from your money and how much from returns.
How it is calculated
Where i = annual return ÷ 12 and n = total number of monthly instalments.
Worked example
₹1 crore goal in 15 years at 12%
Monthly SIP required ≈ ₹19,819
Total invested ≈ ₹35,67,000 and the remaining ≈ ₹64,33,000 comes from compounding.
Who should use this calculator
- Anyone with a specific goal amount and deadline — a house down payment, a car, a wedding, a child's education.
- Investors who have a lump-sum goal in mind but no idea what monthly investment it requires.
- People checking whether their current SIP is sufficient, and by how much it falls short.
- Anyone planning a step-up and wanting to see how a larger instalment reduces the years needed.
Common mistakes to avoid
- Using today's goal amount. A house that costs ₹50 lakh today will cost far more in ten years. Inflate the goal first, then calculate the SIP — otherwise you will systematically under-invest.
- Assuming 15% or higher returns. Planning on optimistic numbers makes the required SIP look small and comfortable. If the actual return is lower, the shortfall appears at the worst possible time.
- Setting the SIP and forgetting it. An annual review keeps the plan aligned with your income and with how the goal's cost has moved.
- Ignoring that a lower return needs a much bigger SIP. Dropping the assumption from 12% to 9% can raise the required monthly amount by a third or more.
- Starting late and planning to catch up later. The years you miss are the cheapest ones, so delay is far more expensive than a slightly higher instalment at the start.
Inflate the goal before you calculate
The single most useful habit in goal planning is restating the goal in future money. A house costing ₹50 lakh today, needed in ten years with inflation at 7%, will cost roughly ₹98 lakh. That is the figure the SIP has to target — and it nearly doubles the monthly investment compared with planning for ₹50 lakh.
Healthcare and education deserve even higher assumptions, often 8–10%, because those costs have historically risen faster than general inflation. Once the goal is inflated, the calculation becomes straightforward: how much must be invested monthly, at a realistic return, to reach that number by the deadline? If the answer is unaffordable, the honest options are to extend the timeline, aim for a higher return with more risk, or reduce the goal.
Target SIP terms explained
- Goal amount
- The future cost of what you are saving for, after adjusting for inflation.
- Inflation-adjusted goal
- Today's price restated at the time you will actually pay it.
- Reverse SIP
- Working backwards from the goal to the monthly investment required, which is what this calculator does.
- Shortfall
- The gap between what your current plan will produce and what the goal needs.
- Review cadence
- How often you revisit the plan. Once a year is usually enough unless your income or the goal changes sharply.
If the required SIP is unaffordable
Sometimes the honest answer is that the goal, as stated, needs more money each month than you can comfortably invest. There are only three levers, and it helps to be deliberate about which one you pull. Extend the timeline — it is usually the least painful, because time does the work that a bigger instalment would have done. Revisit the goal itself: a slightly smaller house in a different locality may close most of the gap. Only then consider a higher return assumption, and if you do, accept the extra risk that comes with it. What you should not do is assume a return you cannot realistically achieve and invest too little as a result.
Frequently asked questions
Should I use an inflation-adjusted goal?
Yes, for long-term goals. If a house costs ₹50 lakh today and you plan to buy in 10 years, inflate that to its future cost at 6–7% first, then use that larger figure as the goal amount.
What if I cannot invest the full amount?
You have three levers: extend the time horizon, aim for a slightly higher return with a more aggressive fund, or reduce the goal. Increasing the SIP every year through a step-up SIP is often the easiest fix.
Does a higher return always mean a better plan?
No. Higher expected returns usually come with higher risk and volatility. It is safer to plan with a realistic return (say 10–12% for equity) and review your progress every year rather than assuming 15%+.