Goal SIP calculator
Work out the monthly SIP that a target amount needs, with prices rising each year. It is arithmetic at a return you assume, not a forecast.
A SIP of
Working out your figures…
Enter an assumed return from 2% to 13% a year to see the illustration.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Past performance may or may not be sustained in future and is not a guarantee of any future returns.
How it is worked out
Target in N years = Goal × (1 + inflation)N
SIP = Target ÷ (((1 + i)ⁿ − 1) ÷ i × (1 + i))
N is the number of years, i the yearly return ÷ 12 and n the number of months. With a 0% return the SIP is Target ÷ n.
Left out: capital gains tax, exit loads, stamp duty and changes in the scheme’s costs.
Questions
01Why does the target grow?
Prices rise over time, so a goal that costs ₹25,00,000 today costs more later. At a 6% price rise a year, it costs ₹44,77,119 in 10 years. The SIP is worked out for that larger amount.
02Is this the SIP my goal will need?
No one can know that. The result is arithmetic at the return and price rise you enter. Mutual fund returns are not fixed; they can be higher or lower than you assume, and they can be negative.
03Are tax and costs included?
No. Capital gains tax, exit loads and stamp duty are left out. Enter a return after the scheme’s costs if you want to allow for them.
Other calculators
How to invest in a Regular plan
Through a mutual fund distributor registered with AMFI, who holds an ARN. Find a distributor on AMFI’s website (amfiindia.com)
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.