Monthly Pension SIP Calculator
Plan a SIP to fund a recurring monthly pension after retirement.
Education ≈ 10%, lifestyle ≈ 6%
About the Monthly Pension SIP Calculator
The Monthly Pension SIP Calculator works backward from a target — child's education, home downpayment, vacation, ₹1 Crore wealth milestone — to tell you exactly how much you need to invest every month, factoring in inflation between today and the goal year. Goal-based investing is the antidote to vague "I want to be rich" planning — it ties every rupee saved to a tangible outcome.
How the Monthly Pension SIP Calculator works
- Define the goal: target amount in today's rupees, years until you need it, and the inflation rate applicable.
- The calculator inflates the target to the future year (e.g., ₹50L MBA today = ₹1.6 Cr in 25 years at 6%).
- It then solves for the monthly SIP at your expected return that builds the inflated target by the goal date.
- For shorter horizons (<5 years), it suggests safer instrument mixes (debt, hybrid) over pure equity.
Inputs explained
Formula
Future cost = target × (1 + inflation)^years Monthly SIP = future cost × i / [(1+i)^n − 1] where i = monthly return, n = total months.
Worked example
A ₹30 Lakh home downpayment needed in 7 years (assuming 6% inflation) translates to ~₹45 Lakh in 2033. Building that requires a ~₹38,000 monthly SIP at 10% expected return in a hybrid fund.
India-specific notes
- •Education inflation in India runs 8-10% — higher than general CPI. Plan child-education goals separately.
- •For goals 1-3 years away, use debt mutual funds or arbitrage funds — equity is too volatile.
- •Sukanya Samriddhi Yojana (8.2%, EEE) is unbeatable for girl-child education goals — cap ₹1.5L/year.
- •Don't park goal money in regular savings accounts — they erode 3-4% real value per year vs inflation.
Tips to maximise this calculator
- →Use separate folios per goal — psychological commitment goes up when goals are visually segregated.
- →Top up the SIP every year by 10% to absorb inflation surprises.
- →Switch to debt 12-18 months before the goal date to lock in gains.
Common mistakes to avoid
- ✕Not adjusting for inflation — saving "₹30L" for a goal 15 years out leaves you 50% short.
- ✕Using equity for short-term (<3 year) goals — a bear market in year 2 can derail the plan.
- ✕Skipping a contingency buffer — add 10-15% to the target for surprises.
Glossary
- Goal-based investing
- Mapping every investment to a specific life goal with a fixed deadline.
- Asset allocation glide path
- Gradually shifting from equity to debt as the goal approaches.
- Step-up
- Annual increment in SIP that matches your salary growth.
- Goal inflation
- The category-specific inflation rate (education vs healthcare vs general).
Frequently asked questions
Is the Monthly Pension SIP Calculator free to use?
Yes. The Monthly Pension SIP Calculator is free, runs in your browser and never stores personal data.
Are the assumptions India-specific?
Yes. We use INR, Indian inflation and India-specific rates (PPF, EPF, FY 2026-27 tax slabs where applicable).
Is this investment advice?
No. This tool is for education. Consult a SEBI registered advisor before investing.