How to use the SIP Goal Calculator (Monthly SIP Needed)
- Enter the target amount you want to reach.
- Enter the number of years until you need the money.
- Enter the return you expect each year, and any amount already invested for this goal.
- Read the monthly SIP needed and the lump sum alternative.
Formula used
With i = rate ÷ 12 and n = months: SIP = (Goal − Existing × (1 + i)ⁿ) × i ÷ (((1 + i)ⁿ − 1) × (1 + i)). Lump sum = (Goal − Existing × (1 + i)ⁿ) ÷ (1 + i)ⁿ.
Worked example
Here is the SIP Goal Calculator (Monthly SIP Needed) worked through with the example values shown above, so you can check each step by hand.
| Inputs | |
|---|---|
| Target amount | ₹50,00,000 |
| Time to goal | 15 years |
| Expected return (per year) | 12 % |
| Already invested towards this goal | ₹0 |
| Result | |
| Monthly SIP needed | ₹9,909 |
| Or one-time lump sum today | ₹8,33,917 |
| Total you invest through the SIP | ₹17,83,676 |
| Expected gains | ₹32,16,324 |
Monthly SIP needed by number of years
For the default target of ₹50 lakh at 12% a year.
| Time to goal | Monthly SIP needed | Total you invest through the SIP |
|---|---|---|
| 5 years | ₹60,616 | ₹36,36,965 |
| 10 years | ₹21,520 | ₹25,82,433 |
| 15 years | ₹9,909 | ₹17,83,676 |
| 20 years | ₹5,004 | ₹12,01,023 |
| 25 years | ₹2,635 | ₹7,90,458 |
| 30 years | ₹1,416 | ₹5,09,927 |
How the answer is calculated
To reach ₹50,00,000 in 15 years at 12% a year, you need a monthly SIP of ₹9,909. Over 180 months you pay in ₹17,83,676 and the expected gain is ₹32,16,324. The calculation uses the same method as the SIP calculator on this site, with the instalment invested at the start of each month, run in reverse.
If you would rather invest once, ₹8,33,917 today at the same 12% would grow to the same ₹50,00,000 in 15 years.
Time is the biggest lever
Starting earlier lowers the monthly amount sharply. For the same goal at 12%, 20 years needs about ₹5,004 a month, against ₹9,909 for 15 years. The table above shows the SIP for several lengths of time.
The return you assume matters too. At 10% instead of 12%, the 15-year SIP rises to ₹11,964. Treat the expected return as an assumption, not a promise, and try a lower figure for a safety margin.
Savings you already have
Money already invested counts towards the goal and keeps growing. With ₹5,00,000 already invested, the same goal needs a monthly SIP of ₹3,968 instead of ₹9,909. If your existing savings will grow to more than the target, the SIP needed is zero.
Include only money you will leave invested for this goal. Do not count your emergency fund.
Making the plan realistic
Inflation raises the cost of long-term goals, so a goal of ₹50 lakh in 15 years buys less than ₹50 lakh does today. To plan for that, enlarge the target using an assumed inflation rate, or use the inflation calculator to see the future cost.
You can also increase the SIP each year as your income rises. The step-up SIP calculator shows how that changes the result. Market-linked returns are not guaranteed and can be negative in some years, so review the plan at least once a year.
Frequently asked questions
How much SIP do I need to reach ₹1 crore?
It depends on the years and return. Enter 1,00,00,000 as the target and your own years and return to see the monthly amount.
What return should I assume?
Use a figure you are comfortable with and not the best past result. Many people test 8%, 10% and 12% to see the range.
Is the answer a guarantee?
No. Market-linked investments vary, and the calculator assumes the same return every year.
What if I increase my SIP each year?
Then you can start with a lower amount. Use the step-up SIP calculator to model that.
Should I choose SIP or lump sum?
The calculator shows both. A SIP suits regular income, while a lump sum needs money available today.
Does it include tax or fund charges?
No. Returns are before tax and use the return you enter, so adjust the return for expense ratios and tax.
This calculator gives estimates for information only. Actual figures from a bank, employer, tax authority or doctor may differ. It is not financial, tax, legal or medical advice.