Required SIP Calculator
Use the controls to change inputs and calculate results.
Understanding Required SIP Calculator
The Required SIP Calculator is a goal-based planning tool that works backward from your target amount to tell you exactly how much you need to invest monthly. Instead of wondering "How much will my ₹5,000 SIP grow to?", you ask "I need ₹50 lakh for my child's education in 15 years—how much should I invest monthly?"
This reverse-engineering approach transforms vague financial aspirations into actionable monthly commitments. Whether you're saving for retirement, your child's education, a dream home, or early financial independence, this calculator provides a clear roadmap by breaking down intimidating future goals into manageable monthly investments.
How to Use the Required SIP Calculator
Define Your Target Amount
Enter your financial goal's value. Remember to inflate current costs—today's ₹50L education may cost ₹1.08Cr in 15 years at 6% inflation.
Set Expected Returns
Choose realistic returns: 7-9% for debt-heavy, 10-12% for balanced, 12-15% for equity-heavy portfolios. Use conservative estimates for critical goals.
Choose Time Horizon
Enter years until you need the money. Longer timelines dramatically reduce required monthly SIP due to compounding's exponential power.
Review Required SIP
The calculator shows monthly SIP needed. If it's unaffordable, extend timeline, lower target, or use step-up SIPs to start smaller and increase gradually.
Required SIP for Common Financial Goals
| Financial Goal | Target Amount | Timeline | Expected Return | Required Monthly SIP |
|---|---|---|---|---|
| Emergency Fund | ₹3,00,000 | 2 years | 7% | ₹11,800 |
| Car Purchase | ₹8,00,000 | 5 years | 10% | ₹10,300 |
| Home Down Payment | ₹25,00,000 | 10 years | 12% | ₹10,750 |
| Child's UG Education | ₹50,00,000 | 15 years | 12% | ₹10,000 |
| Child's PG Abroad | ₹1,00,00,000 | 18 years | 13% | ₹13,500 |
| Retirement Corpus | ₹3,00,00,000 | 25 years | 12% | ₹15,800 |
| Early Retirement (FIRE) | ₹5,00,00,000 | 20 years | 14% | ₹27,000 |
Key Insight: Notice how longer timelines dramatically reduce monthly SIP requirements. A ₹1 crore goal needs ₹13,500/month over 18 years vs ₹27,000/month over 12 years—nearly 50% savings by starting earlier!
How Timeline Affects Required SIP (Goal: ₹1 Crore)
Assuming 12% annual returns, here's how the required monthly SIP changes with time horizon:
| Investment Period | Required Monthly SIP | Total Investment | Power of Compounding | Savings by Starting Early |
|---|---|---|---|---|
| 5 Years | ₹1,22,400 | ₹73,44,000 | 26,56,000 (36%) | — |
| 10 Years | ₹43,500 | ₹52,20,000 | 47,80,000 (92%) | Save ₹78,900/month |
| 15 Years | ₹20,000 | ₹36,00,000 | 64,00,000 (178%) | Save ₹1,02,400/month |
| 20 Years | ₹10,400 | ₹24,96,000 | 75,04,000 (301%) | Save ₹1,12,000/month |
| 25 Years | ₹5,300 | ₹15,90,000 | 84,10,000 (529%) | Save ₹1,17,100/month |
| 30 Years | ₹2,900 | ₹10,44,000 | 89,56,000 (858%) | Save ₹1,19,500/month |
Startling Fact: Starting 20 years earlier reduces required SIP by 96% (₹1,22,400 → ₹5,300)! This is the magic of compounding—time is your biggest asset in wealth creation.
6 Tips for Achieving Your Financial Goals with SIP
Set SMART Goals
Make goals Specific, Measurable, Achievable, Relevant, and Time-bound. "₹50L for child's education in 15 years" is better than "save for child's future."
Always Inflate Target Amount
Calculate future cost using inflation: FV = Current Cost × (1 + inflation)^years. Don't aim for today's ₹50L when you'll need tomorrow's ₹1.08Cr.
Use Conservative Return Estimates
Better to overshoot with 10% estimates than undershoot with 15%. Excess corpus creates a safety buffer; shortfall creates stress.
Prioritize Multiple Goals
Can't fund all goals? Rank by criticality: Emergency fund > Retirement > Child's education > Home purchase. Fund top 2-3 goals first.
Review Progress Annually
Check if you're on track every year. Falling short by 10%? Increase SIP now. Exceeding by 20%? Redirect surplus to next goal.
Combine SIP with Windfalls
Use bonuses, tax refunds, or inheritance to top up. Even one ₹50,000 lumpsum can reduce required SIP by ₹1,000-₹2,000/month.
What If You Can't Afford the Required SIP?
Extend Your Timeline
If ₹25,000/month seems high, calculate SIP for 2-3 extra years. ₹1 crore in 15 years needs ₹20,000/month; in 18 years, only ₹14,000/month.
Lower Your Target Amount
Reassess if target is realistic. ₹75 lakh may be sufficient instead of ₹1 crore. Partial goal achievement beats abandoning the goal entirely.
Use Step-Up SIP
Start with affordable SIP (₹8,000/month) and step up 10% annually. You'll reach ₹20,000/month in ~9 years while income also grows.
Increase Your Income
Upskill for promotions, start side hustle, or freelance. Extra ₹15,000/month income → ₹50L+ corpus in 15 years at 12% returns.
Take Slightly Higher Risk
Moving from 10% expected return to 13% can reduce required SIP by 20-25%. Shift to mid-cap/small-cap equity funds if timeline >7 years.
Combine with Other Savings
Supplement SIP with EPF, PPF, NPS, or employer matching. ₹10,000 SIP + ₹5,000 EPF = ₹15,000 monthly toward same goal.
Common Mistakes in Goal-Based Planning
Not Accounting for Inflation
Biggest mistake! Today's ₹1 crore won't have the same purchasing power in 20 years. Always inflate targets at 6-8% annually.
Using Unrealistic Return Expectations
Don't assume 18% returns based on last year's performance. Use long-term averages: 12% for equity, 8% for hybrid, 7% for debt.
Starting Too Late
Delaying by 5 years can double your required monthly SIP. Start with even ₹2,000/month; you can always increase later.
Mixing Short-term and Long-term Money
Don't invest 2-year goal money in equity funds (too risky) or 20-year goal money in debt funds (too conservative). Match risk to timeline.
Not Reviewing Progress
Set-and-forget fails. Check annually if you're on track. Course-correct early—small adjustments now prevent large shortfalls later.
Ignoring Tax Implications
Post-tax returns matter. If equity gains above ₹1.25L are taxed at 12.5%, your 12% return effectively becomes 10.5%. Plan accordingly.
How to Prioritize Multiple Financial Goals
| Priority Level | Goal Type | Why It's Important | Action |
|---|---|---|---|
| 🔴 Critical | Emergency Fund (6 months expenses) | Prevents debt traps during job loss/medical emergencies | Fund FIRST before any investment. Keep in liquid funds. |
| 🔴 Critical | Retirement Corpus | No loans available for retirement; you MUST have this | Start immediately. Minimum 15% of salary toward retirement. |
| 🟠 High | Child's Education | Education costs inflating at 10% annually; no negotiation | Fund after emergency fund + retirement baseline. |
| 🟠 High | Health Insurance Top-up | Medical inflation 12-15%; inadequate coverage ruins finances | Ensure ₹10-15L family floater before investing heavily. |
| 🟡 Medium | Home Purchase Down Payment | Improves quality of life; but loans available | Fund after critical goals. Rent isn't "wasted money." |
| 🟢 Low | Car/Gadgets/Vacations | Lifestyle goals; depreciating assets | Last priority. Fund only after all above goals secured. |
Frequently Asked Questions
How does the Required SIP calculator work? ▾
SIP = FV × i / ({[1 + i]^n – 1} × (1 + i))
Where:
• SIP = Required Monthly Investment
• FV = Future Value (Target Amount)
• i = Expected Monthly Rate of Return (annual/12)
• n = Number of Monthly Installments (years × 12)
Input your financial goal (e.g., ₹1 crore for retirement), expected returns, and time horizon—the calculator instantly shows the monthly SIP amount needed.
What should be a realistic target amount? ▾
Retirement Corpus (Age 60):
• Comfortable lifestyle: ₹2-3 crore
• Luxurious lifestyle: ₹5-10 crore
• Rule of thumb: 25-30x your annual expenses
Child's Education:
• Undergraduate (India): ₹15-25 lakh (in 15-18 years)
• Post-graduation abroad: ₹50 lakh - ₹1 crore (in 20-22 years)
• Professional courses (medical/engineering): ₹30-50 lakh
Home Down Payment:
• 20-25% of property value
• Metro cities (₹1 crore property): ₹20-25 lakh down payment
• Consider 7-8% annual real estate appreciation
Always inflate current costs by 6-8% annually to account for rising prices.
How do I choose the right investment period? ▾
Short-term (1-3 years):
• Emergency fund, vacation, gadgets
• Use debt funds or hybrid funds (lower risk)
• Expected returns: 6-8% annually
Medium-term (3-7 years):
• Car purchase, home down payment, debt repayment
• Use hybrid funds or balanced advantage funds
• Expected returns: 10-12% annually
Long-term (7+ years):
• Retirement, child's higher education, wealth creation
• Use equity-oriented funds for maximum growth
• Expected returns: 12-15% annually
Golden Rule: Longer tenure allows smaller monthly SIPs due to compounding. Starting 10 years earlier can reduce required SIP by 50-60%.
What if my goal date is approaching but I'm short of target? ▾
1. Increase SIP Amount:
• Top up your existing SIP by 20-30%
• Add one-time lumpsum from bonuses/windfalls
• Every ₹1,000 increase can add ₹1-2 lakh in 5 years
2. Extend Your Timeline:
• If possible, delay goal by 2-3 years
• Compounding continues; shortfall reduces significantly
• Example: ₹20 lakh shortfall becomes ₹5 lakh with 3 extra years
3. Switch to Higher-Return Funds:
• Move from hybrid to equity funds (if 5+ years remain)
• Shift from large-cap to mid-cap funds for higher growth potential
• Risk increases, but so does return potential
4. Adjust Goal Downward:
• Reassess if target is realistic
• Partial funding better than abandoning the goal
• Supplement shortfall with other income sources (part-time work, freelancing)
Should I account for inflation in my target amount? ▾
Inflation Impact Example:
• Today's ₹50 lakh education cost → ₹1.08 crore in 15 years (6% inflation)
• Today's ₹30,000 monthly expenses → ₹67,000 in 15 years
• ₹1 crore corpus today → needs to be ₹2.16 crore in 15 years to buy the same goods
How to Adjust:
1. Calculate current cost of your goal
2. Determine years until goal
3. Inflate at 6% annually: Future Cost = Current Cost × (1.06)^years
4. Use this inflated amount as target in calculator
Inflation Rates to Use:
• Education: 8-10% (rising faster than general inflation)
• Healthcare: 12-15% (highest inflation category)
• General living expenses: 6-7%
• Real estate: 7-8%
Can I use this calculator for multiple goals simultaneously? ▾
Example Multi-Goal Planning:
• Goal 1 - Retirement (25 years): ₹3 crore target → ₹15,000/month SIP needed
• Goal 2 - Child's Education (15 years): ₹50 lakh target → ₹8,000/month SIP needed
• Goal 3 - Home Down Payment (10 years): ₹25 lakh target → ₹10,000/month SIP needed
• Total Monthly SIP Required: ₹33,000/month
Smart Allocation Strategy:
• Prioritize goals by timeline: Nearest goals get debt/hybrid funds, distant goals get equity
• As one goal completes, redirect that SIP to remaining goals
• Review every 2-3 years and adjust SIPs based on progress
• Use step-up SIPs to gradually increase monthly outflow (start with ₹25,000, step up 10% annually to reach ₹33,000)
Consider starting with most critical 2 goals if ₹33,000/month strains your budget, and add the third goal when income increases.
What expected return rate should I use? ▾
Conservative (Low Risk - Debt Heavy):
• Expected Return: 7-9% annually
• Suitable For: Goals within 3 years, risk-averse investors
• Allocation: 70% Debt Funds, 30% Equity
Moderate (Balanced Risk - Hybrid):
• Expected Return: 10-12% annually
• Suitable For: Goals 3-7 years away, moderate risk tolerance
• Allocation: 50% Equity, 50% Debt
Aggressive (High Risk - Equity Heavy):
• Expected Return: 12-15% annually
• Suitable For: Goals 7+ years away, high risk tolerance
• Allocation: 80-100% Equity Funds
Best Practice: Use conservative estimates (10-11%) for critical goals (retirement, child's education) to avoid undershooting. If returns exceed expectations, you'll have a buffer; if they fall short, you're still on track.
How often should I review and adjust my SIP? ▾
Annual Review Checklist:
• Compare current corpus vs expected corpus (use calculator's projections)
• Check fund performance vs benchmark (consistently lagging? Consider switching)
• Reassess goal amount (has cost changed due to higher inflation?)
• Evaluate risk profile (nearing goal? Start moving to debt funds)
When to Increase SIP:
• Salary hike received (step up by 10-15%)
• Falling short of target by >15%
• Inflation higher than anticipated (8%+ vs expected 6%)
When to Decrease SIP:
• Already exceeded target by >20%
• Emergency fund depleted (temporarily pause, rebuild buffer)
When to Switch Funds:
• Underperformance for 2-3 consecutive years vs peers
• Fund manager change or strategy shift
• 3-5 years before goal: Gradually shift from equity to debt (10-15% per year)
Don't: Make changes based on 1-3 month performance or market news. SIP success requires discipline, not frequent tinkering.
Why Choose Our Required SIP Calculator?
Goal-Focused Planning
Reverse-engineered calculations that start with your end goal, giving you a clear monthly action plan to achieve it.
Instant Scenario Analysis
Adjust timeline, returns, or target amount in real-time to see how changes impact required SIP—plan multiple scenarios effortlessly.
Accurate Compounding Math
Uses precise future value formulas, not approximations—ensures your plan actually gets you to your goal.
Educational Insights
Comprehensive guides on inflation adjustment, return expectations, and goal prioritization—learn while you plan.
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