What inflation rate should I use for a goal?

The inflation of the goal, not the headline rate. School and college fees have risen 8% to 10% a year, healthcare similar, while consumer inflation has averaged 5% to 6%. When in doubt, plan at the higher figure: an over-funded goal is an easy problem.

How much SIP do I need for ₹1 crore in 15 years?

At an assumed 12% a year, about ₹20,000 a month; at 10%, about ₹24,000. If the ₹1 crore is a today's-money figure, inflate it first: at 6% inflation it is ₹2.4 crore in 15 years, which needs roughly ₹48,000 a month at 12%. Illustrations only.

Should the whole goal be in equity funds?

Not for the whole journey. A goal more than seven years away can lean on equity for growth; as the date nears, the mix moves to debt and hybrid funds so a market fall in the last years does not derail it. The asset allocation calculator shows this glide path.

What if I cannot afford the SIP the calculator shows?

Start with what you can and step it up every year; a 10% yearly step-up closes much of the gap over a long horizon. Pushing the date out a few years, or adding a lumpsum later, are the other levers.

How often should I review a goal plan?

Once a year, and after any large change: a new job, a child, a house. Check the goal's cost estimate, the SIP against the target and the equity-debt mix against the years left.

What return should I plan on?

A conservative one. The rate is your assumption, and mutual fund returns vary with the market, so plan at the lower of two rates and treat the SIP shown as a starting point to review every year.

Financial calculatorsGoal Planning Calculator

Goal Planning Calculator

Find the monthly SIP that funds a goal, after inflation.

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Six months of essential expenses₹4.5 LTime period2 yrExpected return (p.a.)6%

Target amount: ₹4.5 L
Monthly SIP needed: ₹17,606
Or lumpsum today: ₹4 L

Invested amount₹4.23 L 94%
Est. returns₹27,450 6%

Illustration at the rate you set, not a forecast. Mutual fund investments are subject to market risks; read all scheme related documents carefully.

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How this calculator works

Pick the goal, enter what it costs today and how many years away it is. The calculator inflates today's cost to the target year, then works back to the monthly SIP that reaches that figure at an assumed return. This is the arithmetic behind goal-based investing: one goal, one date, one SIP.

What is a goal planning calculator?

A goal planning calculator works backwards from a goal to the monthly SIP that funds it. Enter what the goal costs today, the years to it and an inflation rate; it inflates today's cost to the target year, then finds the monthly SIP, or the one-time amount, that reaches that figure at an assumed return.

How is it calculated?

Target = Cost today × (1 + inflation)^years; SIP = Target ÷ [((1 + i)^n − 1) / i × (1 + i)]

i is the monthly rate: the assumed yearly return divided by 12; n is years × 12
The one-time alternative is Target ÷ (1 + return)^years

A ₹25 lakh course, 12 years away

Cost today	₹25,00,000
Education inflation	10% a year
Cost in 12 years	₹78,46,070
Assumed return	12% a year
Monthly SIP needed	about ₹24,350
Or invested once today	about ₹20,14,000

Illustration only. Education inflation has run well above general inflation.

Questions people ask

The inflation of the goal, not the headline rate. School and college fees have risen 8% to 10% a year, healthcare similar, while consumer inflation has averaged 5% to 6%. When in doubt, plan at the higher figure: an over-funded goal is an easy problem.
At an assumed 12% a year, about ₹20,000 a month; at 10%, about ₹24,000. If the ₹1 crore is a today's-money figure, inflate it first: at 6% inflation it is ₹2.4 crore in 15 years, which needs roughly ₹48,000 a month at 12%. Illustrations only.
Not for the whole journey. A goal more than seven years away can lean on equity for growth; as the date nears, the mix moves to debt and hybrid funds so a market fall in the last years does not derail it. The asset allocation calculator shows this glide path.
Start with what you can and step it up every year; a 10% yearly step-up closes much of the gap over a long horizon. Pushing the date out a few years, or adding a lumpsum later, are the other levers.
Once a year, and after any large change: a new job, a child, a house. Check the goal's cost estimate, the SIP against the target and the equity-debt mix against the years left.
A conservative one. The rate is your assumption, and mutual fund returns vary with the market, so plan at the lower of two rates and treat the SIP shown as a starting point to review every year.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Figures are illustrations at an assumed rate, not a forecast. Talk to us to match a plan to your goals.