How to use this calculator?
Suppose you want to accumulate ₹25,00,000 in 15 years. You already have ₹2,00,000 to invest as a lump sum today, and plan to invest monthly through SIP. You expect an annual return of 11%. Enter the following:
- Target Amount: ₹25,00,000
- Investment Period: 15 years
- Lumpsum Investment (if any): ₹2,00,000
- Expected Annual Return: 11%
The calculator will show you how much you need to invest monthly via SIP to reach your goal within the desired time frame. It also tells you the total investment made and estimated wealth gained through returns.
This calculator is ideal for planning long-term goals like retirement, children’s education, or house purchase.
Goal-Oriented SIP calculator
This calculator determines the monthly SIP amount required to reach a specific financial goal, factoring in any initial lump sum investment. It helps you plan in reverse — starting from your goal and working backwards to figure out how much to invest regularly.
Formula used in this Calculator? With explanation
This calculator uses two key formulas:
1. Future Value of Lumpsum (FV₁):
FV₁ = L × (1 + r)n
2. SIP Amount (P) needed to reach remaining goal:
P = [ (FV₂ × r) / ( (1 + r)n – 1 ) × (1 + r) ]
- L = Lump sum amount
- r = Monthly return rate (Annual Rate / 12 / 100)
- n = Number of months (years × 12)
- FV₂ = Target Amount – FV₁
This approach first calculates how much your lump sum will grow over the years, then computes how much more needs to be covered by SIP. It solves for the monthly SIP required to make up the difference.
Understanding the benefits:
Goal-oriented SIP investing turns dreams into well-structured financial plans. Instead of saving blindly, you start with a goal — such as higher education, home purchase, or retirement — and work backwards to know exactly how much to invest monthly.
By factoring in a lump sum investment, this calculator reduces the SIP burden — giving you a more practical, personalized path to your goals. It’s ideal for those who have some money saved up already but want to invest systematically moving forward.
While this calculator offers a great estimate, market returns can vary. It’s always a good idea to review your progress regularly and consult a financial advisor to stay on track toward your goal.
Disclaimer:
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