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A Reverse SIP Calculator is designed to help you figure that out by working backward from your financial objectives to see what monthly investments you’ll need. Let’s dive into how this handy tool can make your investment planning a whole lot easier.
Rather than showing you how much your investments might increase over time like a regular SIP calculator does, a Reverse SIP calculator focuses on figuring out how much money you need to set aside monthly to hit a specific financial target. You just enter your goal amount and the timeline you have in mind, and the calculator will tell you how much you should contribute each month.
Key Inputs:
Target Amount: This is the future wealth you’re aiming for, whether it’s for retirement savings, a down payment on a house, or funding your child’s education.
Investment Period: This refers to the length of time you have to reach your goal, like 10, 15, or even 25 years.
Expected Annual Return: This is your forecast for how much return you can expect annually on your investments, keeping in mind historical market trends and the associated risks.
Goal-Oriented: It helps you stay focused on your financial goals, giving you a clear target and a roadmap to achieve it.
Financial Discipline: By showing the monthly contributions required, it encourages you to maintain consistent savings.
Budgeting & Planning: It assists in fitting your investment aspirations into your overall financial plan.
Flexibility: You can easily tweak your goals, timelines, and investment amounts based on any changes in your situation.
Real-Life Applications:
A Reverse SIP Calculator is designed to help you figure that out by working backward from your financial objectives to see what monthly investments you’ll need. Let’s dive into how this handy tool can make your investment planning a whole lot easier.
Rather than showing you how much your investments might increase over time like a regular SIP calculator does, a Reverse SIP calculator focuses on figuring out how much money you need to set aside monthly to hit a specific financial target. You just enter your goal amount and the timeline you have in mind, and the calculator will tell you how much you should contribute each month.
Suppose you want to build a retirement corpus of ₹2 crores in 25 years:
Use Our Calculator to Find Your Required Monthly Investment
Planning for your child’s higher education:
Plan Your Child’s Education Fund
Example Scenarios with Calculations
Scenario 1: Building a House Down Payment
Target Amount | Time Period | Expected Return | Required Monthly SIP |
₹30,00,000 | 5 years | 12% p.a. | ₹37,500 |
₹30,00,000 | 7 years | 12% p.a. | ₹23,800 |
₹30,00,000 | 10 years | 12% p.a. | ₹14,200 |
Scenario 2: Marriage Fund
Target Amount | Time Period | Expected Return | Required Monthly SIP |
₹20,00,000 | 5 years | 12% p.a. | ₹45,000 |
₹20,00,000 | 7 years | 12% p.a. | ₹25,000 |
₹20,00,000 | 10 years | 12% p.a. | ₹15,800 |
A Reverse SIP Calculator is a fantastic resource for anyone looking to reach their financial aspirations. By understanding how much you need to contribute each month, you can craft a structured investment plan that boosts your chances of financial success.