Goal plan
SIP to Buy a Car
A short-horizon SIP for a car purchase — with a note on why short goals change the maths.
A car is a short-term goal, typically 3–5 years. Short horizons change the calculus: there's less time for compounding, so the monthly amount carries more of the load, and market volatility matters more because you can't ride out a downturn before you need the money.
For goals under about three years, many planners prefer lower-volatility instruments over equity SIPs precisely because a bad year right before you buy can derail the plan. The solver uses a more conservative default return here for that reason.
The post-tax view still applies — but with a shorter horizon, more of your redemption may be short-term, which is taxed differently from long-term gains. See the methodology page for how holding period affects tax.
Related tools
In shortA car is usually a short goal of three to five years, too short for pure equity, which can fall sharply just before you need the money. Use an assumed return closer to debt or hybrid funds, back-solve the monthly SIP, and keep the money out of volatile funds as the purchase date approaches.
Monthly SIP needed for ₹15.0 lakh, by time horizon
Required monthly SIP to have ₹15.0 lakh after tax, at an assumed 10% a year. The step-up column starts lower and raises the SIP by 10% every year. Change any input in the calculator above to see your own numbers.
| Horizon | Flat SIP | 10% step-up (starting SIP) | Total invested (flat SIP) |
|---|---|---|---|
| 5 years | ₹19,928 | ₹16,589 | ₹12.0 lakh |
| 10 years | ₹7,818 | ₹5,253 | ₹9.4 lakh |
| 15 years | ₹4,000 | ₹2,207 | ₹7.2 lakh |
| 20 years | ₹2,255 | ₹1,040 | ₹5.4 lakh |
| 25 years | ₹1,330 | ₹522 | ₹4.0 lakh |
Target in future rupees, after 12.5% LTCG on gains above ₹1.25 lakh. Returns are an assumption, not a forecast.
Other goal planners: ₹1 crore · ₹50 lakh · Retirement · Child education · House down payment · Wedding & other milestones
Understand the concept: Managing Volatility With Asset Allocation