Contents
Monthly Investment ↔ Corpus Converter
Find the corpus your monthly SIP will grow to — or calculate the SIP needed to reach your target corpus. Step-up SIP option included.
About this converter
This bi-directional converter handles two common planning questions: “How much do I need to invest monthly to reach my ₹X goal?” and “If I commit ₹Y monthly, what will I have at the end?” Both directions use the same SIP future-value formula with monthly compounding at your chosen rate.
For Indian goal planning, three reference points help calibrate the answer. Retirement: target 25-30× your current annual expenses in inflation-adjusted terms — at 12% returns over 30 years, that’s roughly ₹15,000-20,000/month from age 30. Child’s undergraduate (Indian): ₹15-25 lakh by age 18, achievable with ₹6,000-8,000/month from year 1. Foreign undergraduate or postgrad: ₹50 lakh-1 crore, requiring ₹15,000-25,000/month over 15 years. Home down payment in metro: ₹15-25 lakh in 5-7 years through equity SIP.
The converter helps stress-test these numbers under different return assumptions. Always run the math at both 10% (conservative) and 12% (historical average) — if the target only works at 14%+ assumed returns, the plan is fragile.
Step-up SIP increases monthly investment by a fixed % each year (e.g., 10% annual step-up means ₹10K SIP becomes ₹11K in year 2, ₹12.1K in year 3). This accelerates corpus building and is ideal when you expect salary growth.
Reverse-Engineering Your Goal
Most financial planning starts with a goal: ₹1 crore for retirement, ₹50 lakh for child’s education, ₹25 lakh for a home down payment. The harder question is what monthly investment is needed today to reach that goal at a realistic return. This converter goes both ways: target corpus → required SIP, or current SIP → projected corpus.
Two assumptions dominate the output: expected return (12% is the historical large-cap CAGR; use 10-11% conservatively) and time horizon (every extra year of compounding shrinks the required monthly outlay).
Monthly SIP Required for ₹1 Crore Target
| Years to Goal | At 10% Return | At 12% Return | At 14% Return |
|---|---|---|---|
| 5 years | ₹1,29,140/mo | ₹1,22,440/mo | ₹1,16,030/mo |
| 10 years | ₹48,820/mo | ₹43,470/mo | ₹38,720/mo |
| 15 years | ₹24,130/mo | ₹20,020/mo | ₹16,590/mo |
| 20 years | ₹13,170/mo | ₹10,110/mo | ₹7,720/mo |
| 25 years | ₹7,540/mo | ₹5,320/mo | ₹3,730/mo |
| 30 years | ₹4,420/mo | ₹2,860/mo | ₹1,840/mo |
Note: Each 5-year delay roughly doubles the required monthly investment. Compounding rewards early starts disproportionately.
The Goal-Inflation Trap: ₹1 crore today is NOT ₹1 crore in 20 years. At 6% inflation, today’s ₹1 crore needs ₹3.2 crore in 20 years to maintain real purchasing power. Always inflate your target before reverse-calculating the SIP.
Common Indian Goal Calculations
Example 1: Child’s Higher Education in 15 Years
Today’s IIT/IIM/foreign undergraduate cost: ₹15-30 L. Education inflation 9-12%. In 15 years at 10% education inflation: ₹15 L becomes ₹62.6 L. Required SIP at 12%: ~₹12,540/month. Start at age 0-3 of the child for best compounding.
Example 2: Home Down Payment in 7 Years
Target ₹30 L for down payment + stamp duty. At 12% return, required SIP = ₹23,000/month. Equity-tilted (since 7 years is medium horizon) — use a balanced advantage fund or 70:30 equity:debt mix.
Example 3: Retirement at 60, Starting at 30
Target ₹3 Cr in 30 years (today’s ₹3 Cr → ₹17.2 Cr inflation-adjusted at 6%). Required SIP for ₹17.2 Cr at 12% over 30 years = ~₹49,260/month. With 10% step-up annually: starting ₹19,500/month grows year-over-year to reach the same target.
How to Hit Bigger Goals Without Bigger SIPs
- Step-up SIP: Increase your SIP by 10% each year as income grows. Cuts the starting amount by 30-40% for the same goal.
- Stack tax-advantaged accounts first: EPF (mandatory) + VPF + PPF (₹1.5 L/yr) + NPS (₹2 L/yr extra 80CCD(1B)) before discretionary mutual funds.
- Tilt aggressive when young: 80-85% equity allocation if under 40 + horizon >10 years. Volatility is your friend through SIPs.
- Annual goal review: Inflation may outpace your assumption. Adjust SIP every Jan-Feb when your income increases.
- Bonuses go to SIP top-ups: A ₹2 L annual bonus deployed as additional SIP each year reduces the regular monthly outlay required by ~₹17,000.