Target SIP Calculator

Most SIP calculators answer a forward question: if I invest this much, what will I get? The target SIP calculator answers the question that actually matters for a goal: if I need this much by this date, how much should I invest each month?

That reversal changes the decision. The monthly amount is no longer whatever is left after expenses. It is the price of the goal, expressed as a monthly instalment.

What is a target SIP calculator?

A target SIP calculator takes a target amount, a time horizon, an inflation assumption and an expected return, and solves for the monthly SIP required to reach the target. It is also called a reverse SIP calculator because it runs the standard SIP formula backwards.

The calculator inflates the target first. That is the step most people skip. A ₹1 crore goal today is not a ₹1 crore goal in 15 years. At 6% inflation, it is about ₹2.40 crore.

How the target SIP maths works

The calculation has two stages.

Stage 1: inflate the target

Future target = Target today × (1 + inflation)^years

A ₹1 crore target in 15 years at 6% inflation becomes ₹1 crore × 1.06^15, or about ₹2.40 crore.

Stage 2: solve for the monthly SIP

The standard SIP future-value formula is:

FV = P × ( ÷ i) × (1 + i)

Rearranging for P gives the required monthly instalment:

P = FV × i ÷ ( × (1 + i))

Here i is the monthly return (annual return ÷ 12) and n is the number of months. The calculator uses the annuity-due convention, with each instalment invested at the start of the month.

Target SIP examples at a ₹1 crore goal

The table below assumes a ₹1 crore target in today's money, 6% inflation and a 12% CAGR. The only variable is the time available.

The monthly amount falls sharply as the horizon lengthens. That is the entire argument for starting early: time reduces the required instalment more than any fund selection decision.

Why a target SIP is better than a round-number SIP

A round-number SIP — ₹10,000, ₹25,000, ₹50,000 — is a budgeting habit, not a plan. It answers "what can I comfortably invest?" but not "will I reach the goal?"

A target SIP starts from the liability. It forces three honest inputs: the amount, the date and the return assumption. If the required amount is unaffordable, that is useful information. It means the goal needs to change, not that the assumption should be stretched.

The target should be in today's money

Enter the goal in today's purchasing power, not in future rupees. Most people know what a ₹50 lakh house or a ₹1 crore retirement corpus means today. They do not know what ₹1 crore will mean in 2041. The calculator does the inflation conversion for them.

If you enter a future amount that you have already inflated, you will double-count inflation and overstate the SIP.

What to do when the required SIP is unaffordable

There are four honest levers.

1. Extend the date

A later goal gives the corpus more time. The table shows how much the monthly amount falls between 10 and 15 years. For a retirement goal, a two-year delay may be more realistic than doubling the SIP.

2. Reduce the target

A smaller house, a different education destination or a more modest retirement lifestyle reduces the liability. This is often the most effective lever because it changes the goal rather than the funding.

3. Add a step-up

A step-up SIP increases the contribution with income. It is more sustainable than starting with an unaffordable amount and stopping after a few months. The SIP calculator can model a 5% or 10% annual step-up.

4. Start with a lump sum

A bonus, inheritance or maturing fixed deposit can reduce the monthly requirement. The lumpsum target calculator shows how much one-time capital is needed today for the same goal.

What not to do is raise the expected return assumption until the SIP looks affordable. That converts a funding problem into a market-timing bet.

How to review a target SIP

A target SIP is not a set-and-forget mandate. Review it once a year and after any major change in income, expenses or goal.

• Compare the actual portfolio value with the projected path.
• Recalculate the SIP if the goal amount or date changed.
• Increase the contribution when income rises.
• Reduce equity as the goal approaches, especially in the final three years.
• Check that the emergency fund is still funded before increasing the SIP.

The monthly SIP contribution across the Indian mutual fund industry reached ₹32,490 crore in September 2026, with 10.89 crore outstanding SIP accounts (AMFI). A target SIP is a way to make that habit purposeful rather than random.

Assumptions and limitations

The calculator assumes a constant return and a constant inflation rate. Real returns are volatile, and a poor sequence of returns near the goal date can leave a shortfall even if the long-run average is on track. It does not include taxes, exit loads or fund expense ratios. The result is a planning number, not a guarantee.

For goals under three years, the expected return should be a debt-fund return, not an equity return. For goals over seven years, equity can play a larger role, but the plan still needs a glide path to debt as the date approaches.

Manas Money is an AMFI Registered Mutual Fund Distributor (ARN-330576) and NISM Certified Research Analyst, at 2nd Floor, Madrecha Heights, Lane 3, Road 28, Ram Nagar, Wagle Estate, Thane West - 400604. We manage over ₹110 million in assets for clients across 24+ cities and 7 countries.

To convert your goals into a monthly plan, book a free consultation or read about goals-based investing and financial planning.