Goal Based SIP Calculator

Why work backwards from the goal

Most people don’t have a spare amount looking for a home. They have a thing they want — a house deposit in seven years, a child’s education in twelve, retirement in twenty-five — and no idea what that translates to per month. Starting from the target turns a vague intention into a single number you can either afford or can’t, which is a far more useful piece of information than a projection you had to guess your way into.

It also exposes the trade-off honestly. If the number comes back higher than you can manage, you have exactly three levers: extend the timeline, lower the target, or accept more risk for a higher assumed return. The calculator makes you choose one rather than quietly hoping.

Time is a cheaper lever than money

The ₹1 crore example above is worth sitting with. Fifteen years demands ₹19,819 a month. Twenty years demands ₹10,009. The goal didn’t change and the assumed return didn’t change — only the runway did, and the monthly burden halved.

The reason is that compounding contributes a growing share of the total over time. At fifteen years you’re supplying about 36% of the final corpus yourself. At twenty years, roughly 24%. Every additional year shifts more of the work from your income to your existing balance. This is the entire practical argument for starting now with a smaller amount rather than waiting until you can afford a serious one.

Set the target in today’s money, then adjust

A ₹1 crore target twenty years out is not ₹1 crore of today’s purchasing power. At 6% inflation it’s worth closer to ₹31 lakh in present terms. If you’re funding something specific — a house, a course, a retirement income — work out its cost today, inflate it over your timeline, and use that as the target. Otherwise you’ll hit the number and find it buys considerably less than you planned for.

What this doesn’t account for

• Returns arrive unevenly. The formula assumes a constant monthly rate. Markets don’t provide one, and a bad stretch near the end of your timeline hurts far more than one at the start.
• Tax. The target is a pre-tax figure. Long-term capital gains on equity funds are taxable above the annual exemption, so the amount that reaches you is lower.
• Expense ratio. Returns are quoted gross here. A regular plan charging around 1.5% against a direct plan at 0.5% will cost you several lakh across a long horizon.
• A flat instalment. If your income grows, a step-up SIP reaching the same goal starts materially lower than the figure shown.

Common questions

What return should I assume?

For equity funds over long horizons, 10–12% is defensible. Hybrid funds sit nearer 8–10%, debt around 6–7%. Run your goal at a lower rate as well — if the plan only works at 14%, it isn’t a plan, it’s a hope.

The monthly figure is more than I can afford. Now what?

Start with whatever you can and extend the timeline rather than waiting for the full amount. An instalment begun today at half the required size will usually beat the correct instalment begun in three years, because the early money compounds for longest.

क्या मैं बीच में SIP की राशि बढ़ा सकता हूँ?

हाँ। SIP एक स्थायी निर्देश है, कोई अनुबंध नहीं — आप इसे कभी भी बढ़ा, घटा, रोक या बंद कर सकते हैं। अगर आपकी आय हर साल बढ़ रही है, तो हर साल SIP की राशि 10% बढ़ाने से वही लक्ष्य काफ़ी कम शुरुआती राशि से हासिल हो जाता है।