What is a goal planner?
A goal planner works out the monthly SIP you need to reach a target amount by a set date. It first raises today’s cost of the goal by inflation, then finds the SIP that grows to that amount at your expected return.
How to use it
- Enter what the goal costs today.
- Choose how many years away it is.
- Set expected inflation and the expected return on your investments.
Formula
Future cost = Cost today × (1 + inflation)^years; SIP = Future cost × r / [((1 + r)^n − 1) × (1 + r)]
- r is the monthly rate of return.
- n is the number of months.
Example
A goal that costs ₹20 lakh today will cost about ₹35.8 lakh in 10 years at 6% inflation. At 12% a year, you need a SIP of about ₹15,400 a month to reach it.
Frequently asked questions
Why does the goal planner use inflation?
Prices rise every year. Planning for today’s cost would leave you short, so the planner first works out what the goal will cost when you need it.
What if I cannot invest the full SIP?
Start with what you can and raise it every year, or give yourself more time. Both lower the monthly amount you need.
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- Retirement calculator
- EMI calculator
- Capital gains tax calculator
- Risk profiler
Results are estimates for planning only and are not investment advice.