Goal Amount Calculator
Plan for your future goals considering inflation and calculate required investments
Enter Details
Average inflation in India: 5-7% per year
Expected returns from your investments (e.g., 12% for equity)
Results
Enter values and click Calculate to see results
What is Goal-Based Planning?
Goal-based financial planning is a strategic approach to managing your finances by focusing on specific life goals rather than just accumulating wealth. This calculator helps you understand how much your goals will cost in the future after accounting for inflation, and calculates the investment needed today or the monthly SIP required to achieve them.
Whether it's buying a house, funding your child's education, planning a wedding, or building a retirement corpus, this calculator gives you a clear roadmap by considering inflation, investment returns, and your current savings to show you exactly what you need to do.
How to Use This Calculator
Step 1: Define Your Goal Amount Today
Enter the current cost of your goal. For example, if you want to buy a car that costs ₹10 lakhs today, enter ₹10,00,000. This is the present value of your goal.
Step 2: Set Inflation Rate
Inflation erodes purchasing power over time. A car costing ₹10 lakhs today will cost more in 5 years. Use 5-7% for general inflation, or higher rates (8-10%) for education and healthcare costs.
Step 3: Enter Time to Goal
Specify how many years you have to achieve this goal. The longer the time horizon, the more your investments can grow through compounding.
Step 4: Expected Return Rate
Enter the expected annual return from your investments. Conservative options like debt funds may give 6-8%, while equity investments historically deliver 12-15% over the long term.
Step 5: Current Savings (Optional)
If you already have some savings set aside for this goal, enter that amount. The calculator will show how much this will grow and calculate if additional investments are needed.
Understanding the Results
Future Goal Amount
This is what your goal will cost in the future after adjusting for inflation. A ₹10 lakh car today will cost approximately ₹14 lakh in 5 years at 7% inflation.
Lumpsum Needed Today
This is the one-time amount you need to invest today at your expected return rate to reach the future goal amount. This uses the present value calculation.
Current Savings Growth
If you entered current savings, this shows how much that amount will grow by your goal date based on the expected return rate you specified.
Monthly SIP Required
If your current savings are insufficient, this shows the monthly Systematic Investment Plan (SIP) amount needed to bridge the gap and reach your goal.
Common Goals and Inflation Rates
| Goal Type | Typical Inflation Rate | Recommended Return |
|---|---|---|
| Child's Education | 8-10% p.a. | 12-15% (Equity) |
| Healthcare | 8-12% p.a. | 10-12% (Balanced) |
| Real Estate/House | 5-7% p.a. | 12-15% (Equity) |
| Wedding | 6-8% p.a. | 10-12% (Balanced) |
| Car Purchase | 4-6% p.a. | 8-12% (Debt/Balanced) |
| Vacation/Travel | 5-7% p.a. | 8-10% (Debt) |
| Retirement | 6-7% p.a. | 12-15% (Equity) |
Frequently Asked Questions
1. Why is inflation important in goal planning?
Inflation erodes the purchasing power of money over time. A goal that costs ₹10 lakhs today will cost significantly more in the future. By factoring in inflation, you ensure you're saving enough to actually afford your goal when the time comes.
2. What return rate should I use?
This depends on your investment strategy and risk appetite. Conservative investors might use 6-8% (debt funds, FDs), moderate investors 10-12% (balanced funds), and aggressive investors 12-15% (equity funds). For long-term goals (10+ years), equity historically delivers 12-15% returns.
3. Should I invest lumpsum or through SIP?
Both have merits. Lumpsum works best when you have a large amount available and markets are favorable. SIPs are better for regular income earners as they average out market volatility, instill discipline, and make investing manageable through smaller monthly amounts.
4. What if I can't afford the required SIP amount?
You have several options: (1) Start with what you can afford and increase it annually as your income grows, (2) Extend your time horizon to reduce monthly requirements, (3) Aim for higher returns by taking calculated risks, or (4) Adjust your goal amount to be more realistic.
5. How often should I review my goal plan?
Review your goal plan at least annually or when there are major life changes (salary hike, marriage, child birth, etc.). Market conditions and inflation rates also change, so periodic reviews help you stay on track and make necessary adjustments.