Goal Planner

Find required SIP and lump sum investments needed to hit a target money goal.

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Calculated Results
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Required Monthly SIP-
Required Lump Sum-
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Visual Projection
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Real Value
Yearly Breakdowns
YearInvestedGainsCorpus
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Planning Investments Around a Financial Goal

Goal-based investing starts with the amount you will need and the date you need it, then works backwards to the investment that gets you there. This planner takes your goal at today's prices, inflates it to its future cost, and shows both the required monthly SIP and the lump sum that would do the job today. In the default example, a ₹50 lakh goal 8 years away, 6% inflation lifts the target to about ₹79.7 lakh, and funding it needs roughly ₹50,750 a month through a SIP, or about ₹32 lakh as a one-time investment at a 12% expected return.

Two levers decide the size of that investment. Time is the first: compounding rewards early starts, so shortening the horizon raises the monthly requirement sharply, while every extra year lowers it. The lump sum comes in lower than the SIP's total outlay because the entire amount compounds for the full period, whereas each SIP instalment compounds for less time, the SIP route above invests about ₹48.7 lakh in total to reach the same target. Inflation is the second lever: at 6%, a goal 10 years away costs about 1.8 times its price today, and education and healthcare costs have tended to run even hotter than general inflation.

How you fund the goal depends on the money you already hold. If a windfall is available, the SIP vs lump sum comparison shows how the two routes stack up; otherwise, automate a monthly SIP and raise it when your income rises. Earmark investments for each goal so the money is not quietly repurposed, and as the goal date approaches, move the accumulated amount towards safer instruments so a market fall in the final year cannot derail the plan.

Popular Goal Calculations

Click on any of the popular search scenarios below to load the calculator with pre-configured values:

Frequently Asked Questions

What is a goal-based investment plan?
It is a plan that ties each investment to a specific purpose (a house down payment, a child's education, a car) with a defined amount and date, rather than investing without a target. Working backwards from the goal tells you exactly how much to invest each month, which is what this planner calculates for both the SIP and lump sum routes. Different goals deserve different assumptions: education costs, for example, have typically risen faster than general prices, and the education planner models that directly.
Why is my goal amount inflated to a higher figure?
Because the same goods and services cost more in the future; that is inflation. At an assumed 6% a year, a ₹50 lakh goal costs about ₹79.7 lakh after 8 years, and roughly 3.2 times the original amount after 20 years. The planner does this conversion automatically, which is why the target you see on screen is larger than the amount you entered.
Should I use a SIP or a lump sum for my goal?
The deciding factor is the money you have available today. If the full amount is ready, a lump sum needs less total money (about ₹32 lakh immediately versus roughly ₹48.7 lakh paid out over 8 years for the default ₹79.7 lakh target), because it compounds for the entire period. A SIP suits funding a goal out of monthly income and averages the entry price along the way. Many investors blend both, starting with a lump sum and adding a monthly SIP.
Is a 12% annual return assumption realistic?
10-12% is a common long-run assumption for Indian equity mutual funds, but it is an average, not a promise, over any 5-10 year window actual returns can land far above or below it. The assumption also depends on the portfolio: an equity-heavy plan for a 15-year goal can reasonably use double digits, while a debt-heavy portfolio for a 3-year goal should use far less. Test your plan at several rates. If it still works at 8-9%, it is more resilient to a weaker market.

Formula & Mathematical Approach

Goal planner calculates the SIP or Lump sum required to meet a specific future financial target.

Required Lump Sum=Future Value(1+Return Rate100)Years\text{Required Lump Sum} = \frac{\text{Future Value}}{\left(1 + \frac{\text{Return Rate}}{100}\right)^{\text{Years}}}
Required Monthly SIP=Future Value[(1+i)Months−1i]×(1+i)\text{Required Monthly SIP} = \frac{\text{Future Value}}{\left[ \frac{(1 + i)^{\text{Months}} - 1}{i} \right] \times (1 + i)}
Show Plain Text / Excel Formula
Required SIP = Future Value / (SIP Compounding Factor)
Required Lump Sum = Future Value / (1 + Return Rate / 100) ^ Years

Key Assumptions

  • Returns compound monthly for SIP and annually for Lump Sum.
  • Consistent monthly savings are maintained.
  • Target goal is in nominal terms.