SIP Goal Planning Calculator

Goal SIP Calculator

Calculate the perfect investment plan for your goals

SIP Goal Planning Calculator

The Goal Planning SIP (Systematic Investment Plan) Calculator is an easy-to-use and user-friendly online tool that assists you in getting an overall idea of the future value (wealth goal planner). This is a tool you can use even before you invest your money. Our Goal Planning SIP Calculator helps everyone to get all ideas about how to achieve financial goal with complete money flow path.

Goal planning - SIP calculator helps you how to achieve financial goals, This calculator provide a crystal clear picture of how much you need to invest monthly to reach your financial goals in the future.

How does our Goal Planning SIP Calculator work?

Goal based Systematic Investment Plan (SIP) calculator is an online tool used by investors to find how much money required monthly for achieve goal in future and also If you use our inflation section so our calculator tells accordingly how much you amount required need monthly for beat inflation and archive your goals, If you want this so click on "Yes" in the dropdown menu and calculator adjust formula for inflation, In this we assume the average rate of inflation is approx 6% and do calculations for you.

Below is the formula that we have used in this Goal Planning SIP Calculator:

Simple SIP Based Calculation: P = FV / [(1 + r)^n - 1] / r

Future Value with Inflation (FVI) = Present Value (PV) x (1 + inflation rate)^n

Calculate Monthly SIP with Inflation Adjusted Goal: P = FV / [(1 + r)^n - 1] / r

In the above formula: P is the monthly SIP contribution, FV is the future value, FVI is the future value with inflation, r is for expected monthly rate of return, and we use n for no. of month (Investment horizon * 12)

Note : The rate of interest on a SIP will differ as per market conditions. It may increase or decrease, which will change the final estimated returns.

Targeted Wealth/Goal: In this input fiend enter your future goal amount.

Expected Annual Rate of Return (%): Here, you need to enter the interest rate that you that you achieve on your investments during the entire period.

Tenure (In Years): Here, you need to enter the interest rate that you expect for the investments made during the entire period. In this SIP calculator, you need to put rate of return on per annum basis.

Investment Duration (Years) / Tenure: How many years do you want to achieve this goal? Enter this period in years.

Inflation Adjustment: This allows you to factor in inflation to ensure that your future amount will retain its purchasing power. We assume 6% inflation rate.

Final Result: Now our calculator performs the calculations and delivers the magical number that tells you how much investment you need to make monthly through SIP to reach your goal amount in the specified timeframe.

Our calculator is completely user-friendly and provides the result within second so user gets results instantly.

SIP Goal Planning Investment Example

For example, You want to start SIP as per your specific goal from now

  • Your Goal is : Rs. 2 Lakh
  • Duration: 3 years (36 months)
  • Expected return: 10% annually (Remember, this is an estimate, actual returns can vary)
  • Inflation Adjustment: [Yes : We assume 6% or No : We calculate based on your actual goal.]

Calculations :

SIP Without Inflation: P = FV / [(1 + r)^n - 1] / r

here r is the first we convert in to months then put all values into the formula (monthly rate of return) = 10% / 12 = 0.0083

P = 2,00,000 / [(1 + 0.0083)^36 - 1] / 0.0083 = 4,747.21

Without considering inflation, to reach your target 2,00,000 in three years with a 10% yearly expected return, you would need to invest now approximately 4,747.21 per month through a SIP.

Calculations : Now include inflation (assume 6% yearly inflation rate)

In this case, first modify target with inflation

FVI = Present Value (PV) x (1 + inflation rate)^n

Now add this values into given formula

FVI = Rs. 2,00,000 x (1 + 0.06)^3 = 2,38,203.20

Inflation adjusted value of your goal: 2,38,203.20

Now, Calculate monthly SIP

P = FV / [(1 + r)^n - 1] / r

Now add this values into given formula

P = Rs. 2,38,203.20 / [(1 + 0.0083)^36 - 1] / 0.0083 = Rs. 5,654

With considering inflation, to reach your target 2,00,000 is now adjusted to 2,38203 Now for sip in three years with a 10% yearly expected return, you would need to invest approximately 5,654 per month through a SIP.

Here's a possible scenario

  1. Result without Inflation Adjustment: You need invest 4,747 through monthly SIP to achieve your goal within 3 years.
  2. Result with Inflation Adjustment: You need invest 5,654 through monthly SIP to achieve your goal within 3 years with Inflation rate, your inflation adjusted value of your goal is 2,38,203

Note: This is a simplified example. Actual returns and inflation rates may vary.

Advantages of Trademint's Goal Planning - SIP Calculator

TradeMint offers the best SIP Goal Planning calculator, which provides the following advantages:

  • Goal Clarity
  • Investment Planning
  • Promotes Early Investment
  • Financial Knowledge - This calculator motivates and helps you to learn financial concept easily and achieve financial knowledge.

Final Words

By using our goal planning SIP calculator, you can approach your investment decisions with more information that improve your long-term financial planning.

Start planning your financial future today!

Remember: This Goal Planning SIP calculator provides an estimation. Actual returns may vary depending on market performance and other factors.

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