Goal SIP Calculator

What is a Goal SIP Calculator?

A Goal SIP Calculator works backward from a target corpus to the monthly SIP needed to reach it. Instead of asking "if I invest ₹10,000 a month, what will I have?", it answers "what monthly SIP do I need to reach ₹1 crore in 15 years?". Also known as a reverse SIP calculator or target SIP calculator, it's the right tool when the goal is fixed and you want to size the monthly commitment.

How the calculation works

The standard SIP future-value formula, rearranged to solve for the monthly amount:

Where:

• P — the monthly SIP amount we're solving for
• FV — your target corpus
• r — monthly rate of return (annual rate ÷ 12, in decimal)
• n — total number of monthly installments (years × 12)

Worked examples

Common goal sizes at 12% expected return (a typical Indian equity planning assumption — not a guarantee):

• ₹50 lakh in 5 years — about ₹61,000/month
• ₹50 lakh in 10 years — about ₹22,000/month
• ₹1 crore in 15 years — about ₹20,000/month
• ₹1 crore in 20 years — about ₹10,000/month
• ₹1 crore in 25 years — about ₹5,000/month

Notice how dramatically the monthly amount drops as the horizon extends. That's compounding doing more of the work; for goals 20+ years away, the calculated SIP can be remarkably small.

Should you inflate the target before calculating the SIP?

Yes — if you thought of the target in today's money. The calculator treats the typed number as the nominal future amount you'll need on the day of the goal. If your "₹50 lakh wedding" is actually 4 years away, prices will have risen by then; the real target is closer to ₹63 lakh at 6% inflation, and the required SIP grows accordingly.

Two ways to handle this:

• Toggle on "Inflation adjust target" and set an inflation rate. The calculator inflates the target before solving for the SIP.
• Or use the Goal Inflation Calculator first, get the future cost, and carry the value across via the hand-off CTA — the calculator opens here with the target pre-filled.

What if the calculated SIP is too high?

Three levers, in order of impact:

1. Extend the horizon. The biggest lever. Going from 10 to 20 years can cut the monthly SIP by more than half because compounding does an outsized share of the work over long horizons.
2. Adjust the return assumption. Moving from 10% to 13% reduces the required SIP noticeably, but it implies more equity exposure — and more volatility along the way.
3. Lower the target. Sometimes the right answer. A smaller goal that you can actually fund is better than a large goal you can't.

If you'd rather start small and grow the SIP as your income rises, the Step-Up SIP Calculator lets you model a SIP that increases by a fixed percentage each year.

Goal SIP, Reverse SIP, Target SIP — what's the difference?

They're the same calculator under different names. SEBI's investor education portal uses "Goal SIP Calculator". Mutual fund platforms commonly call it "Reverse SIP" or "Target SIP". The inputs and the math are identical: a target corpus, a duration, and an assumed return, solving for the monthly amount.

Limitations to be aware of

• Constant return assumption. Real markets don't deliver a flat number year after year. The calculator's strength is in sizing the monthly commitment, not in predicting the exact outcome.
• Pre-tax, pre-cost. No allowance for expense ratios (0.5–2% a year for active equity), exit loads, or capital-gains tax. For a post-tax goal, size the target slightly higher to absorb these.
• One goal at a time. For multi-goal plans, run the calculator once per goal and add up the monthly amounts. Keeping each goal in its own scheme makes tracking cleaner.