Step 1: price each goal for the year you'll need it
Prices rise. Something that costs ₹10 lakh today costs about ₹17.9 lakh in 10 years at 6% inflation. Education costs have often risen faster: 8% to 10% a year is a common planning assumption.
| Goal today | When | Inflation assumed | Cost then |
|---|---|---|---|
| ₹20 lakh | 10 years | 6% | about ₹35.8 lakh |
| ₹25 lakh course | 13 years | 8% | about ₹68 lakh |
| ₹50,000 a month to live on | 30 years | 6% | about ₹2.9 lakh a month |
Step 2: save for it monthly
- The ₹20 lakh goal above needs a SIP of about ₹15,416 a month for 10 years, at a 12% return.
- For goals two or three years away, a safer option suits: about ₹19,467 a month in an RD at 6.5% builds ₹5 lakh in 2 years.
- Raising your SIP with each salary hike (a step-up) lets you start smaller.
Returns from equity funds aren't guaranteed and can be negative in some years. Plan with a rate you're comfortable with, and try a lower one too.
Start now: what waiting costs
A ₹10,000 monthly SIP over 20 years at 12% loses about ₹12.4 lakh if you start a year late. The months you miss are the ones that would have grown the longest.
Small costs add up
A 1% difference in yearly return (12% against 11%) on a ₹10,000 SIP over 20 years is about ₹12.6 lakh. Direct plans of a mutual fund charge less than regular plans of the same fund.
Protect the plan
If your family depends on your salary, life insurance should cover their living costs for the years they depend on you, plus your loans and big goals, less what you've already saved. Ten times your income is only a rough rule.
Don't forget tax
Where you save changes what you keep. PPF and Sukanya Samriddhi are tax-free; FD and RD interest is taxed every year; equity fund gains are taxed only when you sell, at 12.5% above ₹1.25 lakh a year after 12 months. See our guides to small savings rates and mutual fund tax.
Common questions
How much SIP do I need for ₹20 lakh in 10 years?
If the goal costs ₹20 lakh today, at 6% inflation it will cost about ₹35.8 lakh. At a 12% return, that needs a SIP of about ₹15,416 a month.
How much does delaying a SIP by a year cost?
On ₹10,000 a month over 20 years at 12%, about ₹12.4 lakh.
How much will ₹10 lakh be worth in 10 years?
At 6% inflation, something costing ₹10 lakh today will cost about ₹17.9 lakh.
How much life insurance do I need?
Enough to cover your family's living costs for the years they depend on you, your loans and big goals, less what you've saved.
Two ways to sort this
Do it yourself
- List each goal, its cost today and the year you'll need it.
- Grow each cost by inflation to that year with our inflation calculator.
- Work out a monthly SIP or RD for each goal with our goal calculators.
- Raise your savings each year when your salary goes up.
Let an expert do it
We make sure your savings plan works with your taxes: the right regime, deductions and timing.
The first chat is freeWork it out for yourself
- Goal SIP: The SIP you need to reach a goal.
- Goal planner: Plan several goals at once.
- Child's education: Save for your child's education.
- Inflation: What today's money will be worth later.
- Cost of delay: What waiting to start a SIP costs you.
- Future value: The future value of a sum or series.
- Present value and annuity: What a future sum is worth today.
- Increasing contribution: Growth when you invest more each year.
- Impact of 1%: How 1% in fees or returns adds up.
- Net worth: What you own minus what you owe.
- Savings: How your savings grow each month.
- Monthly savings: How much to save each month.
- Life insurance need: How much life cover your family needs.
- Retirement: How much you need to retire, and how to get there.
Find the monthly SIP for any goal.
Open the goal SIP calculatorSources
- Investor education: how investments grow, and their risks, Securities and Exchange Board of India
- Consumer Price Index releases, Ministry of Statistics and Programme Implementation
- Life insurance: consumer education, Insurance Regulatory and Development Authority of India
- Tax rules for salaried individuals, AY 2026-27, Income Tax Department
This guide explains the rules in general. For your own situation, .