About Goal Calculator & FAQs
What is goal-based investing?
Goal-based investing is a financial strategy where you set specific, measurable, achievable, relevant, and time-bound (SMART) financial goals (e.g., buying a house, child's education, retirement) and then create an investment plan tailored to achieve each goal.
How does this Goal Calculator assist in planning?
This calculator helps you determine the monthly investment (SIP) required to reach a specific financial target amount. You input your target, any current savings for this goal, your expected rate of return, and the investment period.
How are my current savings factored into the calculation?
The calculator projects the future value of your current savings over the investment period. It then subtracts this from your target amount to determine the shortfall that needs to be covered by new monthly investments.
Why is the investment period (time horizon) crucial for goal planning?
The time horizon is critical as it determines how long your money has to grow through compounding (longer horizons generally mean lower monthly investments) and influences the type of assets you might choose.
What if the calculated monthly investment is too high for me?
If the required monthly investment is beyond your capacity, you might need to extend your investment period, lower your target amount, increase current savings allocated to the goal, or reassess your expected return (though this involves risk).