The Capital IntelligenceCalculate. Analyze. Simulate. Decide.
Tool 38

Mutual fund calculators · Target-based monthly investing

SIP Goal Calculator

Created by Arunangshu DasReviewed

Estimate the monthly investment required to reach a target under a supplied effective annual return.

See how much the opening balance funds and check the ending balance with a rounded monthly payment.

Monthly goal funding

Enter a target at the end of the horizon, an opening balance and a constant effective annual return.

Formatting only. The calculator performs no currency conversion.

Monthly amount to reach your target

Enter a target and assumptions or load the worked example.

A 0.01 increment is used for the payable amount. The calculation assumes a constant return and equal model months.

Understand what drives the projection

Walk through the inverse funding formula, payment timing and the effect of rounding.

Read the complete SIP Goal guide

Formula and methodology

Monthly contribution = remaining funding gap ÷ sum of payment growth factors.

Let f = (1 + A)^(1/12) for effective annual decimal return A. Grow opening balance P to P × f^n after n months. Divide a positive gap by the sum of f^k across payments. End timing uses exponents 0 through n−1, and beginning timing uses 1 through n.

Definitions

A SIP goal projection estimates the fixed monthly amount required to reach a supplied target. The target is a future amount. The opening balance is invested at the start of the model.

Verified worked examples

With target 200, opening balance 100, three months and zero return, the gap is 100 and the mathematical requirement is 100/3 per month. Paying 33.33 ends at 199.99. Paying 33.34 ends at 200.02, a surplus of 0.02.

Interpretation

If the grown opening balance meets the target, no monthly payment is required. If it falls short and no months remain, the goal is unreachable in this model. For a positive gap and horizon, compare the mathematical amount and the upward-rounded payment.

Inputs and interpretation

Enter the target, opening balance, effective annual percentage and whole months. Choose beginning or end timing. Review the opening balance at the horizon, the gap and the ending value with the rounded amount.

Assumptions and limitations

The opening balance grows for the entire horizon. Contributions are fixed and use equal model months. The final end-of-month payment receives no growth and the final beginning payment receives one month.

Supported domain and common mistakes

Target and opening balance must be from 0 through 10^12. Use 0 through 1,200 whole months and an annual effective rate above −100% through 100%. Decimals support 12 fractional places. The model rejects unresolved rounding thresholds, payments above 10^12 and ending balances above 10^30.

Do not compare the goal with the opening balance today when the balance has time to grow or lose value. Do not use ordinary rounding for a payment that must reach the target.

Frequently asked questions

How do I calculate the monthly SIP for a goal?
Grow the opening balance to the horizon, subtract it from the target and divide any positive funding gap by the combined growth factors of the scheduled payments.
What if the opening balance already covers my target?
If its modeled ending value covers the target, the required payment is zero. With a negative return the balance could fall below the target before the horizon.
Why round the monthly payment up?
Ordinary rounding can leave a shortfall. The calculator verifies that the payment in 0.01 increments reaches the goal and that the preceding increment falls short.
Can I use a negative rate?
Yes, above −100%. Compare scenarios to see how a loss assumption can increase the required payment.
What happens with zero months left?
No payment is scheduled. The opening balance either meets the target today or the target cannot be funded within the entered horizon.
Does this calculator account for inflation?
Use the amount you want at the horizon. The calculator does not automatically adjust it for future prices.

Sources and educational scope

Educational constant-return model. It excludes actual fund prices, dates, fees, taxes, FX and inflation. It does not forecast investment performance or guarantee the target.

Reviewed . AI-assisted content under operator editorial responsibility. No independent expert financial review is claimed.

Find a financial tool