Your Target Amount (Rs)
1 Lakh100 Crores
Years to reach your target
010203040
Expected rate of return (% per annum)
0510152025
Amount Invested Total Growth
Required Monthly SIP
Rs. 0
Total Amount You Will Invest
Rs. 0
Your Target Amount
Rs. 1,00,00,000
What is a Target Amount SIP Calculator?
This calculator works in reverse compared to a regular SIP calculator. Instead of telling you what your monthly SIP will grow into, you tell it your goal amount (say, Rs. 1 crore for your child’s education), and it tells you exactly how much you need to invest every month to reach that goal.
This is the most practical way to plan for a specific financial goal — a house down payment, a child’s education, or a wedding — because it starts from the goal and works backward to a concrete, actionable monthly number.
How the Required SIP is Calculated
Required Monthly SIP = Target Amount ÷ [ ( (1 + r)n − 1 ) / r × (1 + r) ]
Target Amount: The goal corpus you want to reach
n: Total number of monthly instalments (years × 12)
r: Effective monthly rate of return, derived as (1 + annual rate)1/12 − 1
Note: This is simply the SIP future-value formula solved algebraically for the monthly investment amount (P), instead of for the future value.
Example: To reach a target of Rs. 1,00,00,000 in 15 years at an expected 12% annual return, you would need to invest approximately Rs. 24,057 every month.
Frequently Asked Questions
What is a Target SIP calculator?
A Target SIP calculator works backward from a financial goal. You enter the amount you want to reach (your target corpus), the number of years you have, and an expected annual return, and it tells you the monthly SIP amount needed to get there.
How is the required monthly SIP calculated?
The calculator rearranges the standard SIP future value formula to solve for the monthly investment instead of the final amount: P = FV / [((1+r)^n - 1)/r x (1+r)], where FV is your target corpus, n is the number of months, and r is the effective monthly rate derived from your expected annual return.
How is this different from a regular SIP calculator?
A regular SIP calculator starts with a monthly amount and tells you what it grows into. A Target SIP calculator starts with the goal amount and tells you the monthly amount you need to invest to reach it.
What if the required SIP amount is more than I can afford?
You can adjust the variables to bring the required amount down: extend the investment period if your goal allows more time, or revisit the expected return assumption. Increasing the time horizon usually has the biggest effect, since compounding needs time to work.
Is the Target SIP calculator result guaranteed?
No. The calculator shows the SIP amount needed under an assumed constant rate of return. Actual mutual fund returns fluctuate with market performance, so the real amount needed to reach your goal may be higher or lower than this estimate.