About the Goal-Based SIP Optimizer
What is the Goal-Based SIP Optimizer?
This goal based sip calculator inflates your goal to its future cost, subtracts what your existing savings will grow to, and finds the SIP that fills the gap.
It also suggests an asset mix for your time horizon and risk appetite, and shows how a yearly step-up lowers the starting SIP.
How to use the Goal-Based SIP Optimizer
- Goal Cost in Today's Money (₹) (sample: 25,00,000)
- Years to the Goal (sample: 10)
- Goal Inflation (% a year) (sample: 6)
- Risk Appetite (sample: Balanced)
- Expected Return (% a year, 0 = use the suggested mix) (sample: 0)
- Savings Already Set Aside (₹) (sample: 2,00,000)
- Yearly SIP Step-up (%) (sample: 10)
- Press Optimise My Goal SIP (results also refresh as you type). The result card shows the Monthly SIP Needed, along with Starting SIP with 10% yearly step-up, Goal cost in 10 years, Existing savings will grow to and Expected return used.
Formula used
SIP = Gap × i ÷ {[(1 + i)ⁿ − 1] × (1 + i)}
- Gap = future goal cost − future value of existing savings
- i = monthly return
- n = number of months
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Goal Cost in Today's Money (₹) | 25,00,000 |
| Years to the Goal | 10 |
| Goal Inflation (% a year) | 6 |
| Risk Appetite | Balanced |
| Expected Return (% a year, 0 = use the suggested mix) | 0 |
| Savings Already Set Aside (₹) | 2,00,000 |
| Yearly SIP Step-up (%) | 10 |
| Result | Value |
|---|---|
| Monthly SIP Needed | ₹19,019 |
| Starting SIP with 10% yearly step-up | ₹12,900 |
| Goal cost in 10 years | ₹44,77,119 |
| Existing savings will grow to | ₹5,42,816 |
| Expected return used | 10.5% |
| Suggested mix | 70% equity funds, 30% debt / short-duration funds |
| Total invested (flat SIP) | ₹22,82,227 |
| Total invested (step-up SIP) | ₹24,67,089 |
How the planner works
These planners use published formulas and clearly stated assumptions rather than a black-box model, so you can see exactly why you get each result. Change any assumption to test your own view.
Tips for using the Goal-Based SIP Optimizer
- Link each SIP to one goal so you do not dip into it for something else.
- Step up SIPs by the same percentage as your salary increments.