SIP Goal Planner

Calculate the monthly SIP needed to reach a target corpus over a chosen tenure at an assumed annual return. Uses the standard future value of annuity formula.

Result

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About SIP Goal Planner

Calculate the monthly SIP needed to reach a target corpus over a chosen tenure at an assumed annual return. Uses the standard future value of annuity formula.

Features

  • Instant SIP amount for your goal.
  • Works with any tenure and rate.
  • INR formatting for readability.

How to Use

  1. Enter target corpus.
  2. Enter annual return and months.
  3. Review required monthly SIP.

What is a SIP goal planner?

A SIP goal planner works backwards from a target. Instead of asking what a monthly SIP will grow to, it tells you how much you need to invest every month to reach a specific amount by a chosen date, such as ₹25 lakh for a child's education or ₹1 crore for retirement. It's the simplest way to turn a vague goal into a monthly number you can commit to.

Monthly SIP needed for a goal

SIP = Target ÷ ([((1+r)ⁿ - 1) / r] × (1+r))

Target is the amount you want, r the expected monthly return (annual return ÷ 12 ÷ 100) and n the number of months. This is the standard SIP future-value formula solved for the monthly amount, assuming each instalment is invested at the start of the month. Enter the target in future rupees: a goal that costs ₹10 lakh today and is 15 years away needs about ₹24 lakh at 6% inflation.

Tips for planning SIP goals

  • Inflate the goal first. Costs rise every year, so plan for the future price, not today's.
  • Start early. Giving a goal 20 years instead of 10 cuts the monthly SIP by more than three-quarters.
  • Step up your SIP every year with your salary. Even a 10% annual increase reaches the same goal with a much smaller starting amount.
  • Match the investment to the time frame: equity for goals 7+ years away, a mix for 3–7 years, and debt funds or FDs for money needed within 3 years.
  • Review once a year, and shift gradually to safer investments as the goal gets close.

Worked example: ₹1 crore in 15 years

  1. Goal: ₹1,00,00,000 in 15 years (180 months), expecting 12% a year (1% a month)
  2. SIP factor = ((1.01)¹⁸⁰ − 1) ÷ 0.01 × 1.01 ≈ 504.6
  3. Monthly SIP needed = ₹1,00,00,000 ÷ 504.6 = ₹19,819
  4. Total invested: ₹35,67,420. The remaining ₹64 lakh or so comes from compounding
  5. With only 10 years to go, the SIP rises to ₹43,041 a month; with 20 years, it falls to ₹10,009

Monthly SIP needed at 12%

Monthly investment required to reach each target at a 12% expected annual return.

Target5 years10 years15 years20 years
₹10,00,000₹12,123₹4,304₹1,982₹1,001
₹25,00,000₹30,308₹10,760₹4,955₹2,502
₹50,00,000₹60,616₹21,520₹9,909₹5,004
₹1,00,00,000₹1,21,232₹43,041₹19,819₹10,009

Assumes a constant 12% return and investment at the start of each month. Actual returns vary, so build in a margin of safety.

Frequently Asked Questions

At a 12% annual return: about ₹43,041 a month for 10 years, ₹19,819 for 15 years, or ₹10,009 for 20 years. At a more conservative 10%, the 15-year figure rises to about ₹23,928.
Many planners use 10–12% a year for diversified equity funds over long periods. Using a lower figure, such as 10%, gives you a buffer if markets underperform.
Yes. Enter the goal's future cost, not today's price. Education and healthcare costs have historically risen faster than general inflation, so be generous for those goals.
Start with what you can and increase it every year. A SIP that steps up by 10% a year needs a much smaller first instalment to reach the same goal. Extending the timeline also helps.
No. SIPs in mutual funds are market-linked, so the final amount can be higher or lower than planned. Review your progress yearly and adjust the SIP if you fall behind.

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