How it works
The SIP calculator starts from a monthly amount and shows what it grows to. This one starts from the goal and finds the monthly amount.
If you already have savings set aside for this goal, enter them. They keep growing at the same expected return, so you need a smaller SIP.
The result also shows the one-time amount that would reach the same goal if you invested it today and left it alone.
Try a few returns. A lower return needs a bigger SIP, and it is wise to plan with a figure you are comfortable missing.
The formula
Monthly SIP = (goal − savings × (1 + r)^years) ÷ [((1 + i)^n − 1) ÷ i × (1 + i)]
r is the yearly return, i is the monthly return (r ÷ 12), and n is the number of months. Each instalment is assumed to be invested at the start of the month.
A worked example
To reach ₹1 crore in 15 years at an expected 12% a year with nothing saved so far, you need about ₹19,800 a month. You would invest about ₹35.7 lakh and the rest, about ₹64.3 lakh, comes from growth.
Frequently asked questions
Which return should I use?
There is no right answer, and returns are not guaranteed. Use a figure you consider realistic for the kind of fund, and also try a lower one to see how much more you would need to put in.
Does it account for inflation?
No. A goal of ₹1 crore in 15 years will buy less than ₹1 crore does today. Use the inflation calculator to find what your goal will cost then, and enter that amount here.
Does it include tax and fund costs?
No. Taxes on gains and fund expenses reduce what you actually receive, so a slightly higher SIP is safer.
What if I increase my SIP every year?
This calculator keeps the SIP flat. A yearly step-up would reduce the starting amount you need, and it is a good way to follow a growing income.