Guide
Understanding the Goal Calculator
The goal calculator works backwards. You tell it what you want to pay for and when, and it estimates the monthly SIP that could get you there. Examples are illustrative.
What is goal-based investing?
Goal-based investing means attaching each investment to a specific purpose and deadline. A child's education, a home down payment and a holiday each get their own target, time frame and approach.
This makes decisions simpler. Short-term goals call for caution, while long-term goals can tolerate more ups and downs.
How to use this calculator
- 1
Enter the goal cost in today's money
Use today's price, not an inflated one. The calculator adds inflation for you.
- 2
Set the years and inflation
Choose when you need the money and a reasonable inflation assumption.
- 3
Add what you have saved
Include any existing savings earmarked for the goal.
- 4
Read the monthly SIP
Check the SIP and the gap, then adjust the timeline or amount until it is workable.
Why the goal cost grows with inflation
A goal that costs ₹25 lakh today will cost more when you reach it. At an assumed 6% inflation over 12 years, that cost becomes about ₹50 lakh. This is an illustration.
That is why the calculator asks for today's cost and then adjusts it for inflation before working out the SIP.
How the gap and the SIP are worked out
If you already have savings for the goal, the calculator lets them grow at your assumed return and subtracts that from the future cost. The remaining gap is what the SIP must cover.
The SIP shown is the monthly amount that would fill the gap if the assumed return holds. A lower return means a higher SIP.
Match the approach to the time horizon
The closer a goal is, the less room there is to recover from a market fall. For goals within a few years, many investors choose lower-risk options, while longer goals can accept more market movement.
Revisit each goal yearly and adjust the SIP if costs or timelines change.
Frequently asked questions
What does the goal calculator tell me?
It estimates the future cost of your goal and the monthly SIP that could fund it at an assumed return.
Why does the goal cost more than today's price?
Because prices rise over time. The calculator adjusts the cost using the inflation rate you choose.
What if I do not know the inflation rate?
Try a few values and see how the SIP changes. Education and healthcare costs may rise faster than general prices.
Can I use it for more than one goal?
Yes. Run it once per goal and add up the SIPs to see the total monthly commitment.
Are the returns assured?
No. Returns are assumptions and actual outcomes can be lower or higher.
Should I change the SIP later?
Review at least once a year and raise the SIP when your income grows or when the goal gets costlier.
All figures in this guide are illustrations based on assumptions, not forecasts. Mutual fund investments are subject to market risks. Read all scheme-related documents carefully.