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Goal Planner (SIP Needed)

Monthly SIP or lump sum needed for a goal, adjusted for inflation

ā‚¹25 lakh
ā‚¹
What the goal would cost if you paid for it today: a car, a child's education, a home down payment.
years
%
%
How fast the goal's price rises. Set 0 if the amount is already the future cost.
Monthly SIP needed
ā‚¹19,270/ month
Nineteen Thousand Two Hundred Seventy Rupees
Goal cost then
ā‚¹44,77,119
after 6% inflation
Or lump sum today
ā‚¹14,41,513
invested once, now
Total SIP invested
ā‚¹23,12,371
Returns earned
ā‚¹21,64,748
At 6% inflation, ā‚¹25,00,000 today will cost about ā‚¹44,77,119 in 10 years.
The SIP uses monthly compounding (same as our SIP calculator); the lump sum uses yearly compounding (same as our lumpsum calculator). Returns are not guaranteed.
Your SIP growing toward the goal

Runs entirely in your browser. Nothing you type or upload is sent to us or stored.

Results are estimates, not financial advice. Rates, charges and rules change, so confirm with your bank, post office or a financial adviser before you decide. Terms of use

How to Use

  1. Enter your Goal amount as it would cost today, for example ā‚¹25 lakh for a child's higher education.
  2. Enter the Years to the goal and the Expected return on your investments.
  3. Enter the Inflation rate for this goal, or set it to 0 if your amount is already the future cost.
  4. The result updates as you type: the goal's future cost, the monthly SIP needed and the lump sum needed today, with a year-wise chart of your progress.

Plan backwards from your goal

Most money goals have a price today and a date in the future: a child's education, a car, the down payment on a flat, a wedding. Between now and then the price rises with inflation, and your investments grow. This goal SIP calculator works backwards. It first finds what the goal will cost when you need it, then tells you how much to invest every month, or once today, to get there.

The formulas

Future cost = today's cost Ɨ (1 + inflation)years
Monthly SIP = future cost Ć· { [(1 + r)n āˆ’ 1] Ɨ (1 + r) Ć· r }, r = return Ć· 12 Ć· 100, n = months
Lump sum today = future cost Ć· (1 + return)years

The SIP figure uses monthly compounding, with each instalment paid at the start of the month. That's the same method as our SIP calculator, so if you put the suggested SIP in there, you'll reach the goal. The lump sum uses yearly compounding, like our lumpsum calculator.

Worked example

Higher education that costs ā‚¹25 lakh today is needed in 10 years. If education costs rise 6% a year, it will cost about ā‚¹44.77 lakh by then. At an expected return of 12%:

  • Monthly SIP needed: about ā‚¹19,270. You put in ā‚¹23.12 lakh over 10 years and the rest comes from returns.
  • Or a lump sum today of about ā‚¹14.42 lakh.

Leave inflation out and the SIP comes to only about ā‚¹10,760, which would leave you nearly ā‚¹20 lakh short. That's why the inflation step matters.

How time changes the monthly amount

Monthly SIP needed for ā‚¹1 crore (a future amount, no inflation added) at 12% a year:

YearsMonthly SIPOr lump sum today
5ā‚¹1,21,232ā‚¹56,74,269
10ā‚¹43,041ā‚¹32,19,732
15ā‚¹19,819ā‚¹18,26,963
20ā‚¹10,009ā‚¹10,36,668

Nothing helps as much as starting early. Going from 10 years to 20 cuts the monthly amount by more than three-quarters.

Choosing the inputs

  • Inflation: goals don't all inflate at the same speed. Planners often assume education and healthcare costs rise faster than general prices, so use a higher rate for those if you want a margin.
  • Expected return: base it on where you'll invest. Equity funds suit goals 7 or more years away, though their returns swing. For goals under about 5 years, debt funds, FDs or RDs are safer, and a lower return of 6ā€“7% is more realistic.
  • Review once a year: if returns fall short, raise the SIP. A step-up SIP that grows with your income helps you stay on track.
  • As the date gets close, move money bit by bit from equity to safer options, so a market fall just before you need the money doesn't wreck the plan.

Frequently Asked Questions

In two steps. First inflate the goal's cost to the year you need it: future cost = today's cost Ɨ (1 + inflation)^years. Then divide by the SIP growth factor [((1 + r)^n āˆ’ 1) Ɨ (1 + r) / r], where r is the monthly return and n the number of months. This calculator does both for you.

At an assumed 12% a year, about ā‚¹43,000 a month for 10 years, about ā‚¹19,800 for 15 years, or about ā‚¹10,000 for 20 years. Returns aren't guaranteed, so leave yourself a margin.

Because prices rise. Something that costs ā‚¹25 lakh today will cost about ā‚¹44.8 lakh in 10 years at 6% inflation. Plan for today's price and you'll be well short when the goal arrives.

A lump sum needs less money in total, because it compounds for longer. Most people don't have that money upfront, though. A SIP spreads the effort over time and averages your purchase cost when markets swing. You can also do both: invest what you have now and cover the rest with a SIP.

It depends on where you'll invest and how far away the goal is. Equity funds suit long goals, but returns vary from year to year. For goals within about 5 years, use safer options and a lower expected return. A cautious figure makes it more likely you'll actually reach the goal.