fincalculatorGoal Planner Calculator
Turn your financial dreams into reality. Calculate exactly how much you need to save per month to achieve your life goals, adjusted for inflation.
We all have dreams—buying a home, funding a child’s higher education, a grand wedding, or a comfortable retirement. But a dream without a plan is just a wish. The Financial Goal Planner bridges the gap between your dreams and reality.
This is not just a savings calculator; it is a reality check. It tells you the Future Value of your goal and the Monthly Investment (SIP) required to achieve it, keeping inflation in mind.
The Inflation Factor: The Silent Killer of Dreams
Scenario:
You want to save ₹20 Lakhs for your child’s college in 15 years. You save exactly ₹20 Lakhs.
Result: Failed Goal.
Why? Because costs didn't stay still. With 6% inflation, that ₹20 Lakh course now costs ₹48 Lakhs! You have less than half the money needed.
Our Goal Calculator prevents this disaster by first calculating the future cost of your goal and then telling you how much to save.
Who Should Use This Tool?
- Parents: Planning for children's education (Education inflation is 8-10%).
- Young Professionals: Planning specifically for a house down payment or buying a car.
- Everyone: Planning for Retirement (the biggest financial goal of life).
How It Works (The Math)
The calculator works in two steps:
Step 1: Calculate Future Value
First, we find out how much the goal will cost in the future due to inflation.
Future Value = Present Cost × (1 + Inflation Rate)^YearsStep 2: Calculate Monthly SIP
Then, we calculate the monthly investment needed to reach that Future Value.
SIP Formula = Future Value × i / [ (1+i)^n - 1 ] × (1+i)(Where i = monthly return rate, n = months to go)
Plan Your Goal Now
E.g., Cost of MBA in 2024 is ₹20 Lakhs
Cost after 10 years (Adj. Inflation)
₹ 0
Required Investment
Monthly SIP Needed
₹ 0
OR One-time Lumpsum
₹ 0
Why inflation matters?
At 6% inflation, a cost of ₹1 Cr today will become ₹0 in 10 years. Your investment plan must target this future amount.
Typical Goal Costs & Inflation Rates
| Goal Category | Present Cost (Approx) | Inflation Rate |
|---|---|---|
| Higher Education (MBA/MS) | ₹25 - 50 Lakhs | 10% |
| Wedding | ₹20 - 50 Lakhs | 6% |
| House Down Payment | ₹20 - 40 Lakhs | 5% |
| Luxury Car | ₹15 - 30 Lakhs | 5% |
Where Should You Invest?
Your investment instrument depends on the time remaining for your goal:
- Short Term (< 3 Years)Stick to FDs, RDs, or Debt Mutual Funds. Do not risk your capital in shares for short-term goals.
- Medium Term (3-7 Years)Use a mix of Hybrid Funds or Balanced Advantage Funds (60% Equity / 40% Debt).
- Long Term (> 7 Years)Go for Diversified Equity Mutual Funds. They have the potential to beat education/medical inflation over long periods.
Frequently Asked Questions (FAQs)
Why do I need to account for inflation in goal planning?
Inflation reduces the purchasing power of money. ₹20 Lakhs today might buy an MBA seat, but 10 years later, the same course could cost ₹40 Lakhs. If you save only ₹20 Lakhs, you will fail to meet your goal.
What is a realistic inflation rate for education?
Education inflation in India is typically higher than general inflation. It is safe to assume 8-10% inflation for higher education goals (Engineering/Medical/MBA).
How much return can I expect from Equity Mutual Funds?
For long-term goals (over 7 years), broadly diversified Equity Mutual Funds tend to deliver 12% to 15% annualised returns. However, returns are market-linked and not guaranteed.
Can I use this for retirement planning?
Yes, absolutely. Entering your current age, retirement age (goal year), and estimated expenses will help you calculate the retirement corpus needed.
What if I cannot afford the suggested SIP amount?
Start with whatever you can afford (e.g., ₹5,000) and aim to increase it by 10% every year (Step-up SIP). This is a powerful way to reach large goals with small beginnings.