Question 1

How do I calculate how much SIP I need for a goal?

Accepted Answer

The required SIP formula is: SIP = Target x r / [((1+r)^n - 1) x (1+r)], where r is the monthly return rate and n is the number of months. This calculator also adjusts the target for inflation, showing the real amount you need at the end of your goal period.

Question 2

Should I adjust my goal for inflation?

Accepted Answer

Yes. If your goal is Rs 50L today but it is 10 years away, at 6% inflation you actually need Rs 89.5L. This calculator shows both the nominal target and the inflation-adjusted target, and calculates the SIP based on the adjusted figure.

Question 3

What is a realistic return to use for goal planning?

Accepted Answer

For goals 5+ years away, 11-13% (equity funds) is a reasonable assumption. For goals 2-5 years away, 7-9% (hybrid or debt funds) is more appropriate. For goals under 2 years, use 6-7% (liquid or ultra-short duration funds). This calculator lets you set any return rate.

Question 4

What if I miss SIP payments?

Accepted Answer

Missing SIP payments will reduce your final corpus. If you expect to miss some months, increase your monthly SIP slightly above the calculated amount to stay on track.

Goal Planning Calculator

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