Start from the goal, not the SIP
You usually know what a goal costs today and when you need the money, not how much to invest. The planner works backwards:
- Cost when you need it = today's cost × (1 + price rise)years. A ₹25 lakh degree in 15 years, with fees rising 10% a year, will cost about ₹1.04 crore.
- Minus what your savings grow to by then at the expected return.
- Divided by what ₹1 a month grows to over the same years: that's the SIP needed. A step-up SIP starts lower and rises every year; a lumpsum is the one amount that grows to the shortfall.
For example, ₹1 crore in 20 years at a 12% return needs a SIP of about ₹10,000 a month. The same goal in 10 years needs about ₹43,000 a month, which is why starting early matters more than the return.
Choosing the numbers
- Price rise: education costs have risen faster (around 10% a year) than prices in general (5–6%).
- Return: equity funds suit goals 7 or more years away. As the goal gets closer, move money to safer options like debt funds or fixed deposits, so a market fall doesn't hit the money just before you need it.
- For retirement, use the retirement calculator, which plans for the years after you stop working too.
Results are estimates for illustration only, not financial advice. Banks and schemes may round, apply TDS or use slightly different day counts — confirm figures with your bank or employer. Written by the Welthr team; last reviewed on .