What is the Goal SIP?
A goal SIP reverses the usual question. Instead of asking what ₹10,000 a month becomes, it asks what monthly amount reaches ₹50 lakh in ten years. That is the number that actually helps you plan a house down payment, a child's education or a car.
Any money you have already saved counts too — it keeps compounding on its own, reducing the SIP you need.
Formula & worked example
Subtract the future value of existing savings, then solve for the instalment:
SIP = Need × i / (((1 + i)N − 1) × (1 + i))
Worked example: a ₹50,00,000 goal in 10 years at 12%, with ₹5,00,000 already saved. The existing amount grows to about ₹16.5 lakh, leaving ₹33.5 lakh to build. The required SIP is roughly ₹14,400 a month, of which you contribute ₹17.3 lakh and the market adds the rest.
How to use this goal sip calculator
- Enter the target amount in future rupees — for a long goal, inflate today's cost first.
- Add anything already earmarked for this goal so it is not double-counted.
- Use 10–12% for equity over 7+ years; 7–8% for goals under 5 years.
- If the SIP looks unaffordable, extend the timeline before raising the return assumption.
Smart tips
- Inflate the goal first. A ₹20 lakh education cost today is about ₹40 lakh in 12 years at 6% education inflation.
- Keep goals under 3 years in debt funds or FDs. Equity is unreliable over short horizons regardless of the average return.
- Run one SIP per goal. Separate folios make it far harder to raid your retirement fund for a holiday.
- If the required SIP is out of reach, add a step-up — even 10% a year closes the gap quickly.
Frequently asked questions
How much should I invest monthly to get ₹1 crore?
At 12% over 15 years, roughly ₹20,000 a month. Over 20 years about ₹10,000, and over 25 years about ₹5,300 — which shows how much time matters more than amount.
Should I use 12% or 15% as expected return?
Use 10–12% for diversified equity. Assuming 15% makes the required SIP look small and leaves you short if markets deliver less.
What if I miss a few SIP instalments?
The shortfall compounds. Increase later instalments or extend the timeline; the calculator lets you re-run with the new numbers.
Should I invest a lumpsum or start a SIP for a goal?
If you already have the money, a lumpsum has longer to compound. If you are saving from salary, a SIP is the practical choice and averages out entry price.
Want the theory behind the numbers? Read our goal planning guides on the Money Blog.