Here's the exact framework — you plug in your own return assumption.
$$\text{SIP} = \frac{FV \times r}{(1+r)^n - 1}$$
Where:
- $FV$ = ₹1,00,00,000
- $r$ = monthly rate = annual rate ÷ 12
- $n$ = 120 months (10 years)
| Expected Annual Return | Required Monthly SIP |
|---|---|
| 8% | ₹54,800 |
| 10% | ₹48,800 |
| 12% | ₹43,500 |
| 14% | ₹38,700 |
These are approximate. Use the PMT function in Excel to get exact figures:
=PMT(rate/12, 120, 0, -1,00,00,000)
1. Existing investments you assign to this goal
If you already have, say, ₹10 lakh in equity funds earning 12%, that grows to ~₹35 lakh in 10 years. Your remaining SIP target drops to ₹65 lakh — meaningfully lower required monthly contribution. [10]
2. Step-up SIP
Instead of a fixed SIP, increase contributions ~7–10% each year alongside salary increments. You start lower and end higher — better cash flow management without sacrificing the corpus. [4]
3. Return assumption discipline
Stretching from 10% to 14% cuts your SIP by ~20%. But that requires mid/small-cap tilt — higher Volatility — definition">volatility. Match the return assumption to the fund category you'll actually use, not the optimistic end. [1]
| Horizon | Category | Reasonable Assumption |
|---|---|---|
| 10 years | Flexicap / Large & Mid | 11–12% |
| 10 years | Nifty 50 index | 10–11% |
| 10 years | Balanced Advantage | 9–10% |
A 1% annual fee (regular plan vs. direct plan) over 10 years at 10% returns reduces your ending corpus by roughly ₹8–10 lakh on a ₹1 Cr goal. That's effectively several months of SIP wasted. [2]
Go to Goal Planner — enter ₹1 Cr goal, 10-year horizon, your return assumption, and any existing investments assigned to this goal. It will output the exact required SIP and recommended fund categories.