Enter your goal’s cost today, the years left, inflation and the return you expect. This goal-based SIP calculator shows the monthly SIP you need and what the goal will really cost by then.
Goal-based SIP Calculator
Work backwards from a goal such as education, a home or retirement to a monthly SIP.
Monthly SIP needed at different returns
| Expected return | Starting monthly SIP (₹) |
|---|
Illustrative estimates only. Actual returns and inflation vary.
A ₹25 lakh goal today does not cost ₹25 lakh in 10 years. At 6% inflation it costs about ₹44.77 lakh, and that is the number your SIP has to reach. A goal-based SIP calculator works backwards from that future price to a monthly amount.
How do you use this goal-based SIP calculator?
- Enter what the goal costs in today’s money, such as a college fee or a home down payment.
- Set the number of years left until you need the money.
- Add the inflation you expect for that goal.
- Enter the return you expect from your SIP. Pick a number you can defend, not the highest one you have heard.
- Add any savings already set aside for this goal, and a yearly step-up if you plan to raise your SIP.
- Press Calculate, read the SIP you need and the return table, then use Copy result to save a summary.
Stock Charcha built this goal-based SIP calculator to show the inflated goal cost first, because planning against today’s price is the most common reason people fall short.
How does the goal-based SIP calculator work out the SIP you need?
It works in three steps. First it inflates the goal, then it grows any savings you already have, and finally it finds the monthly SIP that covers the gap.
Future cost = Cost today × (1 + inflation)years
Monthly SIP = Gap × i ÷ [((1 + i)n − 1) × (1 + i)]
Here the gap is the future cost minus your grown savings, i is the monthly return (annual return ÷ 12 ÷ 100) and n is the number of months. The calculator treats each instalment as invested at the start of the month.
What does a worked example look like?
Take a goal that costs ₹25,00,000 today, 10 years away, with 6% inflation and an illustrative 12% return, and no savings set aside yet.
| Item | Amount |
|---|---|
| Goal cost today | ₹25,00,000 |
| Goal cost in 10 years | ₹44,77,119 |
| Monthly SIP needed | ₹19,270 |
| Total SIP invested | ₹23,12,372 |
| Estimated returns | ₹21,64,748 |
So you invest about ₹23.12 lakh and the market is expected to add about ₹21.65 lakh. These figures are illustrative, not a promise.
How does the timeline change the SIP the goal-based SIP calculator shows?
Time is the strongest lever. Here is the same goal with 6% inflation and a 12% return over different timelines.
| Years to goal | Goal cost then | Monthly SIP needed |
|---|---|---|
| 5 years | ₹33.46 lakh | ₹40,559 |
| 10 years | ₹44.77 lakh | ₹19,270 |
| 15 years | ₹59.91 lakh | ₹11,874 |
The goal costs more as years pass, yet the SIP falls sharply because each rupee gets longer to compound. Going from 5 years to 10 years cuts the monthly amount by more than half here.
How much does the expected return change your SIP?
The return you assume matters almost as much as the timeline. Here is the 10-year example at different returns.
| Assumed return | Monthly SIP needed |
|---|---|
| 8% | ₹24,310 |
| 10% | ₹21,676 |
| 12% | ₹19,270 |
| 14% | ₹17,082 |
A lower assumption means a higher SIP, which is the safer way to plan. If your actual return turns out higher, you simply reach the goal sooner.
Can savings or a step-up lower the SIP you need?
Yes. If you already hold ₹3,00,000 for this goal, it grows to about ₹9.90 lakh and the SIP drops to about ₹15,008 a month. Add a 10% yearly step-up instead and you can start at about ₹13,268 a month.
Both levers help, and you can combine them in the goal-based SIP calculator. Stock Charcha keeps both optional so you can test each one alone. Pick the one you can sustain for the full timeline.
What does this goal-based SIP calculator leave out?
It does not deduct the fund’s expense ratio, so enter a net return. It also ignores capital gains tax, and inflation for education or medical costs can differ from general inflation. Check current tax rules on the Income Tax Department website as of today.
For a goal only a few years away, equity returns are far less predictable, so weigh the risk before assuming 12%. For fund data, use AMFI. Mutual fund investments are subject to market risks. Read all scheme related documents carefully before investing. At Stock Charcha we would rather show a cautious number than a flattering one.
Where should you go after using the goal-based SIP calculator?
New to SIPs? Start with what is SIP in mutual funds, then pick a fund category from the types of mutual funds. To see how raising your SIP helps, try our step-up SIP calculator.
Not sure where the monthly amount will come from? Our 50/30/20 budget guide can help. Then rerun the goal-based SIP calculator with a lower return and see whether the plan still holds.
Founder of Stock Charcha. Stock market enthusiast, actively investing since November 2022. About the author
Educational content only. This page is not personalised financial advice. Please do your own research or speak to a SEBI-registered adviser before investing, and read our disclaimer.
Frequently asked questions
How do I set a financial goal for a SIP?
Decide three things: what the goal costs in today’s money, the year you need it, and how important it is. Then give each goal its own SIP, so you can track progress and adjust one goal without disturbing the others.
Should I use a different inflation rate for each goal?
Yes, if you have a reason to. Education and medical costs can rise at a different pace from general inflation, so use your own estimate for each goal. A slightly higher figure is a safer way to plan.
What if my goal is less than five years away?
Equity returns are less predictable over short periods, so a high assumed return can mislead you. Use a lower figure, consider how much risk you can take, and speak to a SEBI-registered adviser if the goal is important.
Does the goal-based SIP calculator include tax?
No. It ignores capital gains tax and the fund’s expense ratio, so the real corpus can be lower than shown. Enter a return net of charges and check current tax rules before you rely on the result.
Can I plan several goals at once?
Yes. Run the goal-based SIP calculator separately for each goal, then add the monthly amounts. If the total is more than you can afford, stretch one timeline or start with the goal that matters most.