Calculator
Calculate required monthly SIP amount
Enter your target amount, expected return, duration, and current savings to estimate the SIP required.
Required monthly SIP Rs. 0
Total investment (incl. savings) Rs. 0
Estimated gains Rs. 0
SIP planning
Monthly SIP Required Calculator
Find the exact monthly investment required to build your target corpus within your desired timeframe and expected return profile.
Last updated: May 2026
How this calculator helps
This calculator is designed to eliminate the guesswork from financial target planning. Instead of picking a random SIP amount and hoping it will meet your goal, you work backward from your target corpus. This helps you to:
- Determine the realistic monthly commitment needed to reach a specific financial goal.
- Incorporate any current savings so your calculated SIP remains as low and efficient as possible.
- Understand how return expectations and investment horizons reduce the required out-of-pocket investment.
Example calculation
Suppose your goal is to build a fund of Rs. 50,00,000 (50 Lakh) over 15 years, assuming a 12% expected annual return rate and starting with Rs. 0 savings.
The monthly SIP required to hit that target is exactly Rs. 9,910. Your total out-of-pocket investment over 15 years will be Rs. 17,83,800, and the estimated returns/gains from compounding will cover the remaining Rs. 32,16,200 of your target goal.
What this means for you
Knowing your required monthly contribution allows you to audit your budget and make practical choices. If the calculated SIP is higher than your current surplus, you can modify variables by extending the timeline to let compounding do more work, or starting with a lower SIP and scheduling annual step-ups.
Formula used
To compute the required monthly SIP contribution, the calculator first determines the future compounded value of any current savings:
FV_savings = Savings * (1 + r / 100)^n
Then, the remaining corpus required is calculated:
Target_needed = max(0, Target_corpus - FV_savings)
Finally, we apply the reverse future value annuity formula for monthly SIP contributions:
Required_SIP = Target_needed / [((1 + r_m)^m - 1) / r_m * (1 + r_m)]
Where:
r_m = expected_return / 12 / 100(Monthly expected interest rate)m = years * 12(Total months)
Common mistakes
- Overestimating Asset Returns: Factoring excessive return expectations (like 18-20%) which leads to planning a lower monthly SIP than actually needed.
- Disregarding Inflation: Forgetting that a target of Rs. 50 Lakh in 15 years might purchase much less than Rs. 50 Lakh today.
- Failing to Account for Existing Corpuses: Keeping existing savings out of the equation, which results in over-saving or under-utilizing capital.
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Frequently asked questions
How do compounding returns affect my required SIP?
Compounding means your earnings generate their own earnings. The longer your time horizon, the lower your out-of-pocket investment has to be, as returns cover the bulk of the goal.
Can I change my SIP amount mid-way?
Yes. You can increase or decrease your SIP dynamically as your salary changes, or top-up whenever you receive lump sums like annual bonuses.
What if my actual returns are lower than expected?
If returns are lower, you will face a shortfall. It is safer to use moderate return estimates (e.g. 10-12% for equity) and review your goals annually.
Does the calculation include mutual fund fees?
No. Standard calculator models do not subtract expense ratios, fees, or capital gains tax. Plan for a slightly higher margin to cover these costs.
Trust note
CalcToPlan calculators are designed for educational and planning purposes only. The results are estimates based on the inputs provided by you. They should not be treated as investment, tax, legal, loan, retirement, or financial advice. Please consult a qualified professional before making major financial decisions.