WealthJot.ai
WealthJot.ai
🎯 Goal-Based SIP
How much SIP do you need to reach a financial goal?

A Goal-Based SIP of ₹1,00,00,000 for 10 years at 12% is ₹70,395.

Formula

Required Monthly SIP = Goal Amount ÷ {[((1 + r)^n − 1) ÷ r] × (1 + r)}, where r = monthly return rate, n = months to goal

Worked example
InputValue
Target Amount₹1,00,00,000
Current Savings₹5,00,000
Time Horizon10 yr
Expected Annual Return12%
Inflation Adjustment6%
Required Monthly SIP₹70,395
Inflation-Adjusted Goal₹1,79,08,477
Existing Savings Will Grow To₹15,52,924
SIP Will Contribute₹1,63,55,553
Total SIP Invested₹84,47,423
Years to Goal10 yr

Working backwards from the goal

The regular SIP calculator answers “what willArranging how your wealth passes on after death. ₹X/month become?” — this one answers the more useful reverse: “what monthly SIPInvesting a fixed amount at regular intervals, automatically. reaches ₹Y by year N?” It’s the same annuityA product that pays a guaranteed regular income. math inverted, and it turns vague intentions (“save for the house”) into one concrete, actionable number.

ExampleTarget ₹50 lakh in 10 years at 12%: required SIP ≈ ₹21,700/month. The same target in 15 years needs only ₹9,900 — two-thirds less per month for five more years of runway. Time is the cheapest input in the formula; monthly cash is the most expensive. Start goals early not out of virtue but because the arithmetic charges brutal late fees.
Size the goal in *futureA binding agreement to buy or sell at a set price on a future date.* rupees before solving for the SIP: a ₹25 lakh education goal 15 years away is ~₹60 lakh at 6% inflationThe steady rise in prices that erodes money’s purchasing power. (worse at education’s real 8-10%). Solving for today’s price plants a guaranteed shortfall in the plan. Inflate first, then compute — and step the SIP up annually so the burden falls as income grows.
Common mistakeUsing 12-14% for a goal that’s 4 years away. Short-horizon goals can’t ride out an equityA unit of ownership in a company. drawdownThe worst peak-to-trough fall in a portfolio., so they belong in debt/hybrid allocations earning 7-9% — which means a higher required SIP. Match the assumed return to the asset mixHow you split money across equity, debt, gold and other assets. the horizon permits, not to the number that makes the SIP feel affordable.
✓ You learnedGoal SIP = target (inflated to the goal year) reverse-solved into a monthly amount. Add years before adding rupees — time discounts the required SIP dramatically — and use horizon-appropriate return assumptions: equityA unit of ownership in a company. rates for 7+ year goals, debt rates for near ones.
FAQs
What if I can’t afford the required SIP today?

Start with what you can and commit to a 10-15% annual step-up — a stepped SIP starting at 60% of the required flat amount typically still reaches the goal. The alternatives are honest too: extend the timeline, trim the target, or add lump sums (bonuses) along the way. What doesn’t work is assuming a higher return to force the math.