Find the monthly SIP required to reach a future target given expected returns. Paste this file into your site or host it and embed via an iframe.
| Year | Months contributed | Invested (₹) | Projected value (₹) | Gain (₹) |
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Most of us begin our investment journey with a simple question — “How much will my SIP grow into after a few years?”
But the wiser question, often overlooked, is the reverse one: “How much should I invest every month to reach a particular goal?”
That’s where the idea of a Reverse SIP Calculator becomes valuable.
It allows you to start not with uncertainty, but with clarity — by setting a destination first, and then finding the right path to reach it.
What Is a Reverse SIP Calculator?
A Systematic Investment Plan (SIP) is a method of investing a fixed amount regularly, usually monthly, in mutual funds. It helps investors benefit from rupee-cost averaging and the power of compounding.
A Reverse SIP Calculator simply flips the usual direction of thought.
Instead of asking what your current SIP will become after a certain time, it asks:
“What SIP amount do I need to reach a specific future target?”
It helps you determine the required monthly investment based on:
- Your target amount
- The time period available
- The expected annual rate of return
This approach is particularly helpful for people who have a clear financial goal — such as building a retirement corpus, funding a child’s education, or saving for a house — but are unsure how much to invest every month to make it happen.
The Logic Behind the Calculation
The reverse SIP calculation is based on the future value of an annuity formula, which is used to calculate the accumulated value of a series of periodic investments at a given rate of return.
The formula is:
Future Value (FV) Formula:
FV = P × ((1 + r)n − 1) / r
where:
FV = Future Value or Target Amount
P = SIP amount per month
r = Monthly rate of return (annual rate ÷ 12 ÷ 100)
n = Total number of months
Where:
- FV = Future Value (target amount)
- P = SIP amount per month (the unknown we’re solving for)
- r = Monthly rate of return (annual rate ÷ 12)
- n = Total number of months
Rearranging the formula gives:
Reverse SIP Formula:
P = FV × r / ((1 + r)n − 1)
where:
P = Required monthly SIP amount
FV = Target corpus (future value)
r = Monthly rate of return (annual rate ÷ 12 ÷ 100)
n = Total number of months
If your SIP investment is made at the beginning of each month, the calculator adjusts the formula slightly to include one extra period of compounding.
Understanding Through an Example
Suppose your target is to accumulate ₹20 lakh in 10 years.
You expect an annual return of 12%.
Here’s how it works:
- Monthly rate of return (r) = 12 ÷ 12 ÷ 100 = 0.01
- Total months (n) = 10 × 12 = 120
- Target amount (FV) = ₹20,00,000
When you plug these values into the formula, the required monthly SIP turns out to be around ₹8,800.
So, if you consistently invest ₹8,800 every month for ten years, and the returns average around 12% annually, you will likely reach your goal of ₹20 lakh.
Why Think in Reverse?
The conventional approach to investing often focuses on “what I can do with what I have.”
But the reverse approach starts with “what I want” and then helps you work backwards to plan realistically.
Thinking in reverse has several advantages:
- It gives you clarity on how your financial goals translate into actionable monthly commitments.
- It allows you to test different scenarios — changing the period or return rate to see how the required SIP changes.
- It builds discipline because your monthly investments are guided by purpose, not guesswork.
The Power of Goal-Based Investing
The most successful investors are rarely those who chase high returns; they are the ones who align their investments with their goals.
A Reverse SIP Calculator is a simple tool that helps you make this alignment.
By planning backward, you give your money a direction. You stop reacting to market noise and start investing with intent. It’s a quiet but profound shift — from saving vaguely to investing purposefully.
The Mathematics of Peace
Every financial goal hides an emotional one — security, independence, peace.
When you quantify that goal, you bring it closer to reality.
A Reverse SIP Calculator doesn’t just calculate numbers; it converts hope into a monthly habit.
It’s mathematics applied to peace of mind.
In Closing
Investing is not about predicting the future; it’s about preparing for it.
The Reverse SIP approach reminds us that wealth creation begins not with randomness but with reason — not with the question “What will happen?” but with “What must I do to make it happen?”
Planning in reverse may sound counterintuitive, but often, clarity begins when we start from the end.