Whether you are saving for a child’s higher education, a home down payment, a wedding or a car, this goal planning calculator shows what the goal will cost in future and how much you need to invest, either every month or once today, to reach it.
How the goal planning calculator works
First, today’s cost is increased by the inflation rate you choose to estimate the future cost. Any amount you have already saved is grown at your expected return. The calculator then works out the monthly SIP, or the one-time investment today, needed to cover the remaining gap.
For example, a goal costing ₹25 lakh today, needed in 10 years with 6% inflation, would cost about ₹44.8 lakh. At an assumed 12% return, that needs a monthly SIP of roughly ₹19,300, or a one-time investment of about ₹14.4 lakh today.
Choosing sensible assumptions
- Some costs rise faster than general inflation. Education costs in India have often risen by 8% to 10% a year, so consider a higher figure for education goals.
- Match the investment to the time available. Equity funds suit goals many years away; for goals within a few years, lower-risk options such as debt funds or deposits are usually more appropriate, with a lower expected return.
- As the goal approaches, consider gradually moving money from equity to safer options so a market fall does not derail it.
Read more: saving for your child’s higher education and asset allocation for middle-class investors.
Mutual fund investments are subject to market risks. Please read all scheme related documents carefully before investing. This calculator is for educational purposes only and does not constitute investment advice.