How to use this calculator?
Suppose your goal is to accumulate ₹20,00,000. You already have ₹1,50,000 as a lump sum to invest and can contribute ₹10,000 every month through SIP. You expect an annual return of 12% on your investments. Enter the following values:
- Target Amount: ₹20,00,000
- Lumpsum Investment: ₹1,50,000
- Monthly SIP Investment: ₹10,000
- Expected Annual Return: 12%
The calculator will tell you how many months (or years) it will take to reach your goal based on your investment inputs and return assumptions.
This is helpful for planning time-bound goals like a child’s education, wedding, or down payment for a house.
How Long to Save calculator
This calculator helps estimate how long it will take to achieve a specific financial goal when you’re investing a combination of a one-time lump sum and recurring SIPs. It gives a realistic projection for goal-based planning and makes it easier to stay focused on a timeline.
Formula used in this Calculator? With explanation
This calculator uses iterative computation to determine the time required to reach the target amount, combining the formulas for lump sum and SIP growth:
1. Future Value of Lumpsum:
FV₁ = L × (1 + r)n
2. Future Value of SIP:
FV₂ = S × [ (1 + r)n – 1 ] × (1 + r) / r
- L = Initial lump sum investment
- S = Monthly SIP amount
- r = Monthly rate of return (annual rate / 12 / 100)
- n = Number of months (which we need to calculate)
The calculator keeps increasing n month by month until FV₁ + FV₂ ≥ Target Amount.
This method provides the minimum duration you need to reach your financial goal with your current plan.
Understanding the benefits:
This calculator is designed for goal-focused investors who want to know **how long** it will take to reach a target amount based on current investments. It’s especially useful for planning big life goals — such as buying a home, planning for higher education, or building a retirement corpus.
By combining SIP and lump sum contributions, the calculator gives a realistic roadmap. If your timeline is too long, you can use it to adjust either your SIP amount, lump sum, or return expectation. This allows you to actively fine-tune your plan to meet your deadlines.
While the projections are helpful, remember they are based on assumed returns. Always factor in market risks and consult a financial advisor when planning long-term investments.
Disclaimer:
“This article is for educational purposes only. Read our full disclaimer .”