How the Goal-Based SIP Calculator Works
Enter your financial goal amount, any current savings already earmarked for this goal, your expected annual return, and the number of years you have to invest.
The calculator first projects your current savings forward to see how much of the goal they alone will cover, then works out the monthly SIP required to make up the remaining amount.
You'll see the required monthly SIP, your total investment (current savings + all SIP instalments), and the estimated returns that make up the rest of your goal.
Formula Used
The required SIP is derived from the future-value-of-an-annuity-due formula, solved in reverse:
Required SIP = (Goal − FV of Current Savings) ÷ [ ((1+i)^n − 1)/i × (1+i) ]- iExpected monthly return (annual rate ÷ 12)
- nNumber of months in the investment period
- FV of Current SavingsCurrent Savings × (1+i)^n
Example Calculation
Saving ₹50 lakh over 15 years with some current savings already in place.
- Goal Amount₹50,00,000
- Current Savings₹2,00,000
- Expected Return12% p.a.
- Investment Period15 years
- ResultRequired Monthly SIP ≈ ₹9,400 – ₹9,600 (varies slightly with rounding and exact inputs)
Important Assumptions
- The expected return you enter is an assumption for planning purposes, not a guaranteed outcome — actual mutual fund and market returns fluctuate and are never assured.
- This calculator assumes a constant monthly SIP amount and constant expected return for the entire period, and that SIP instalments are invested at the start of each month (annuity-due), which is how most SIPs are structured.
- This calculator does not account for taxes on investment gains, expense ratios, or exit loads that may apply to your actual investments.