Calculator
Financial Goal Calculator
Most financial goals — a house, a car, a child’s education, retirement — cost far more by the time you reach them, because inflation keeps lifting prices. This calculator does two things: it inflates today’s cost to what the goal will actually cost on your target date, then works out the monthly SIP you need to get there at your expected return. Enter the goal, the years you have, an inflation rate, and a realistic return, and you get a concrete monthly number to start investing. Use it to turn a vague ambition into a plan you can act on.
What the goal would cost if you bought it today.
How long until you need the money.
India’s long-run inflation is around 5–6%.
What you expect your investments to earn. Equity ~10–12%.
How the SIP grows to your goal
- Invested
- Gains
Assumes a constant return compounded monthly, investment at the start of each month, and a steady inflation rate. Market returns are volatile and not guaranteed, so review your SIP every year and step it up as your income grows.
What your result means
- The future cost is higher than today’s price because of inflation — budgeting for today’s sticker price is the most common goal-planning mistake.
- Starting earlier slashes the required monthly SIP dramatically — time does most of the work, not the contribution size.
- Match the investment to the horizon: debt/FD for under 3 years, hybrid for 3–7, equity for 7+ — chasing equity for a near-term goal is risky.
How to use this calculator
- Enter what your goal would cost if you bought it today.
- Set how many years you have until you need the money.
- Enter an inflation rate — 5–6% is a sensible long-run figure for India.
- Set a realistic expected return based on where you will invest (equity ~10–12%).
- Read the required monthly SIP and start investing; revisit the number yearly.
The formula
Future cost = G × (1 + f)^t, where G = today’s cost, f = inflation rate, t = years. Required SIP = (Future cost × i) ÷ [((1 + i)ⁿ − 1) × (1 + i)], where i = monthly return (annual ÷ 12 ÷ 100) and n = months (t × 12).
Worked example
A goal that costs ₹20,00,000 today, needed in 10 years, with 6% inflation and a 12% expected return: the future cost inflates to about ₹35,82,000. To reach that, you need to invest roughly ₹15,400 a month for 10 years. Ignoring inflation would have understated the target by over ₹15 lakh — which is why planning against the future cost, not today’s price, is essential.
When to use it
- Planning a house down payment, car, or wedding several years away.
- Working out the monthly SIP for a child’s future college fees.
- Sizing contributions toward a retirement corpus in today’s terms.
- Seeing how inflation quietly raises the true cost of any long-term goal.