Goal SIP Calculator
Find the monthly SIP needed to reach a target amount by a chosen year.
Monthly SIP needed
Year-wise growth at this SIP
| Year | Invested | Returns | Value |
|---|---|---|---|
| 1 | ₹1,29,122 | ₹8,708 | ₹1,37,830 |
| 2 | ₹2,58,243 | ₹34,897 | ₹2,93,141 |
| 3 | ₹3,87,365 | ₹80,783 | ₹4,68,148 |
| 4 | ₹5,16,487 | ₹1,48,865 | ₹6,65,351 |
| 5 | ₹6,45,608 | ₹2,41,956 | ₹8,87,565 |
| 6 | ₹7,74,730 | ₹3,63,230 | ₹11,37,960 |
| 7 | ₹9,03,851 | ₹5,16,261 | ₹14,20,112 |
| 8 | ₹10,32,973 | ₹7,05,075 | ₹17,38,048 |
| 9 | ₹11,62,095 | ₹9,34,211 | ₹20,96,306 |
| 10 | ₹12,91,216 | ₹12,08,784 | ₹25,00,000 |
The last row reaches your target. Values assume the same return every year.
How it works
A SIP invested at the start of every month grows like this (the same formula as our SIP calculator), where P is the monthly SIP:
Value = P × ((1 + i)n − 1) ÷ i × (1 + i)
Setting the value equal to your target and solving for P gives:
Monthly SIP = Target ÷ [((1 + i)n − 1) ÷ i × (1 + i)]
- i = monthly return = expected yearly return ÷ 12 ÷ 100
- n = number of months = years × 12
At 0% return, the monthly SIP is simply Target ÷ n. Results are shown rounded to the nearest rupee.
Worked example
You want ₹10,00,000 (10 lakh) in 10 years, assuming 12% a year.
- Monthly return i = 12 ÷ 12 ÷ 100 = 0.01; months n = 120
- (1 + i)120 = 3.300387
- F = (3.300387 − 1) ÷ 0.01 × 1.01 = 232.3391
- Monthly SIP = ₹10,00,000 ÷ 232.3391 = ₹4,304.05
- Total invested = ₹4,304.05 × 120 = ₹5,16,487; estimated returns = ₹4,83,513
Frequently asked questions
What is a goal SIP calculator?
It works the SIP calculation backwards. Instead of asking what a monthly SIP will grow to, you enter the amount you want, the time you have and an expected return, and it tells you how much to invest every month to get there.
How is the monthly amount calculated?
It uses the same formula as our SIP calculator, with each instalment invested at the start of the month and growing at the yearly return ÷ 12 each month. A monthly SIP of ₹1 grows to F = ((1 + i)^n − 1) ÷ i × (1 + i), so the SIP you need is the target divided by F.
Should my target include inflation?
Yes, if the goal is years away. A cost of ₹10 lakh today will cost more later. Use the inflation calculator to turn today's cost into a future cost first, then enter that as your target here.
What return rate should I use?
Use a rate you think is realistic for the investment you plan to use, and try a lower rate too. A lower assumed return means a higher monthly SIP, which gives you a margin of safety. Returns on market-linked investments are not guaranteed.
What if I cannot afford the monthly amount?
You can extend the time period, lower the target, or start with a smaller SIP and increase it each year. The step-up SIP calculator shows how a yearly increase changes the final value.
Does this account for amounts I have already saved?
No. It assumes you start from zero. If you already have savings for this goal, estimate what they will grow to with the lumpsum calculator and reduce your target by that amount.
Why might the real result be different?
Mutual fund returns change every year and your SIP is bought at the NAV on each date, so the final value can be higher or lower than the target. Review your progress every year and adjust the SIP if needed.