Goal Parameters
₹ 50,00,000
₹
10 Yrs
Yrs
₹ 0
₹
12%
%
6%
%
SIP Projection
Required Monthly SIP₹ 20,000
Inflation-Adjusted Goal₹ 90,00,000
Total Principal Invested₹ 40,00,000
Wealth Gain (Returns)₹ 50,00,000
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Goal SIP Formula
The required monthly SIP is calculated using the Future Value of an Ordinary Annuity formula, working backwards from your inflation-adjusted goal:
SIP = FV × r ÷ [(1 + r)^n − 1]
Where FV is your inflation-adjusted future goal amount, r is the monthly return rate, and n is the total number of monthly installments.
Frequently Asked Questions
Because ₹50 Lakhs today will cost significantly more in 10 years due to inflation. If inflation is 6%, a ₹50L goal becomes ~₹89.5L in 10 years. Without adjusting, you'd be under-saving.
For equity mutual funds in India, 10-14% is a commonly used historical average. For debt/fixed income, 6-8% is appropriate. Use 10-12% for a diversified balanced portfolio assumption.