How to use the Goal Calculator
- 1
Enter what the goal would cost if you paid for it today.
- 2
Set the number of years until you need the money.
- 3
Choose an inflation rate for that type of expense.
- 4
Set an assumed return and read the future goal value and the monthly SIP needed.
The formula
Future cost = C × (1 + i)^t; SIP = Future cost ÷ ([((1 + r)^n − 1) ÷ r] × (1 + r))C is today's cost, i is yearly inflation, t is years to the goal, r is the monthly return (annual ÷ 12 ÷ 100) and n is t × 12 months. SIPs are assumed to be paid at the start of each month.
Worked example
A goal costing ₹10 lakh today, due in 10 years, becomes about ₹17.91 lakh at 6% inflation. At an assumed 12% return, a SIP of about ₹7,708 a month may reach it, with total contributions of roughly ₹9.25 lakh.
Tips
- Give each goal its own SIP so you can track progress separately.
- As a goal comes within two or three years, consider moving the money gradually to lower-volatility funds.
- Revisit the goal cost every year, since prices for weddings, homes and cars can change quickly.
Frequently asked questions
How do I calculate the SIP needed for a goal?
First inflate today's cost to the goal year, then divide that future amount by what ₹1 of monthly SIP may grow to at your assumed return. The calculator does both steps, so you only need today's cost, years, inflation and an assumed return.
What inflation rate should I use for my goal?
Use a rate that suits the expense. Many planners use around 6% for general household costs and a higher rate for education or healthcare, which have tended to rise faster. When unsure, try a higher rate so the plan has some margin.
What if I cannot afford the SIP the calculator shows?
Start with what you can afford now and increase the SIP each year as income grows. You can also extend the goal date, reduce the target or add lumpsums like bonuses. A smaller start is far better than waiting for the full amount.
Can I plan several goals at the same time?
Yes, run the calculator once for each goal and add up the SIPs. Short-term and long-term goals usually need different fund categories, so we help you match each goal with a suitable mix and track them separately.