Debt Freedom SIP Calculator

Plan systematic investment to become debt-free and achieve financial independence.

Debt Freedom

Financial Independence

Goal-based Investment

Select Financial Goal

Save to pay off existing debts and become debt-free

Goal Amount (Today's Value)

₹

Fifteen Lakhs rupees

₹1L₹20 Cr

Current Savings for this Goal

₹

Zero rupees

₹0₹15.00 L

Investment Period

years

1 year50 years

Expected Annual Return

5%20%

Consider Inflation

2%15%

Today's Value:₹15.00 L

Future Value:₹47.58 L

Required Monthly SIP

₹0

Goal may not be achieved with current settings

Debt Freedom Fund

Risk Profile: conservative

Total Invested

₹0

Estimated Returns

₹0

Maturity Amount

₹0

Consider increasing SIP or investment period

Goal vs Achievement

Target Amount₹47.58 L

Expected Amount₹0

Surplus/Deficit₹-47,58,254

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Goal Achievement Chart

Track your progress towards your goal

Goal Amount

₹10,00,000

Maturity Amount

₹10,00,000

Goal achieved!

Achievement Timeline

Year 5

With current plan

Investment Growth Over Time

Invested

Value

Goal

Year 0

₹0K

Year 1

₹1.6L

Year 2

₹3.5L

Year 3

₹5.5L

Year 4

₹7.7L

Year 5

₹10.1L

Key Insights

Total Returns:₹2,50,000

Return Percentage:33.3%

Monthly SIP:₹12,500

Investment Period:5 years

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Year-wise SIP Breakdown

Detailed annual progress of your SIP investment journey

Year

Monthly SIP

Annual Investment

Cumulative Investment

Portfolio Value

Annual Returns

Total Returns

2026

₹12,500

₹1,50,000

₹1,57,500

+₹7,500

₹7,500

2027

₹12,500

₹1,50,000

₹3,00,000

₹3,30,750

+₹23,250

₹30,750

2028

₹12,500

₹1,50,000

₹4,50,000

₹5,21,325

+₹40,575

₹71,325

2029

₹12,500

₹1,50,000

₹6,00,000

₹7,30,958

+₹59,633

₹1,30,958

2030

₹12,500

₹1,50,000

₹7,50,000

₹9,61,553

+₹80,595

₹2,11,553

Financial Milestones

Track your journey to key financial goals

₹1 Lakh

Year 1

₹5 Lakh

Year 3

₹10 Lakh

Beyond timeline

₹25 Lakh

Beyond timeline

Progress Summary

2 out of 6 milestones achieved in 5 years

Investment Performance

Key metrics of your SIP investment

Expected Annual Return

10%

Compounded annually

Wealth Multiplier

1.3x

Your money grows by this factor

Returns vs Investment

33%

Returns as % of total investment

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Debt Freedom Formulas

Formulas to calculate debt repayment time, total interest paid, and strategies for becoming debt-free.

N = -log(1 - (P × i) / PMT) / log(1 + i)

Example:

Loan of ₹5,00,000 at 10% annual interest with monthly payment of ₹10,000

-log(1 - (5,00,000 × 0.10/12) / 10,000) / log(1 + 0.10/12)

= 60 months (5 years)

Variables:

N - Number of payments (months)

P - Principal loan amount

i - Monthly interest rate (Annual rate ÷ 12)

PMT - Fixed monthly payment

Total Interest = (Monthly Payment × Number of Payments) - Principal

Example:

Monthly payment of ₹10,000 for 60 months on a ₹5,00,000 loan

(10,000 × 60) - 5,00,000

= ₹1,00,000

Variables:

Monthly Payment - Fixed monthly payment

Number of Payments - Total number of payments

Principal - Initial loan amount

These formulas provide the mathematical foundation for the calculations. Actual results may vary based on rounding, compounding frequency, and specific lender policies.

Frequently Asked Questions

Find answers to common questions about goal-based SIP planning and financial planning strategies.

What is goal-based SIP planning?

Goal-based SIP planning involves investing systematically in mutual funds with specific financial objectives in mind. Instead of investing randomly, you define clear goals (like education, marriage, retirement) and calculate the required monthly investment to achieve them within a specific timeframe.

How does inflation affect my financial goals?

Inflation erodes purchasing power over time. What costs ₹1 lakh today might cost ₹2-3 lakhs in 15-20 years. Our calculator includes inflation adjustment to show the realistic future cost of your goals, helping you plan adequately for actual financial needs.

Should I have separate SIPs for different goals?

Yes, it's advisable to have separate SIPs for different goals as they have different time horizons and risk profiles. Short-term goals (1-3 years) need conservative investments, while long-term goals (10+ years) can have higher equity allocation for better returns.

What if I can't invest the calculated SIP amount?

Start with whatever amount you can afford and increase it annually as your income grows. You can also extend the investment period or adjust the goal amount. The key is to start early and invest consistently, even if the amount is smaller initially.

Can I change my SIP amount during the investment period?

Yes, most mutual funds allow you to increase, decrease, or pause SIPs. You can set up step-up SIPs that automatically increase your investment annually. This helps counter inflation and leverage salary increments for faster goal achievement.

What returns should I expect from equity mutual funds?

Historically, equity mutual funds have delivered 12-15% annual returns over 10+ year periods. However, returns can be volatile in short term. For planning purposes, using 10-12% expected returns for long-term goals is reasonable and conservative.

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Debt Freedom SIP Calculator

On this Page

Debt Freedom Fund

Goal vs Achievement

Goal Achievement Chart

Key Insights

Expected Annual Return

Wealth Multiplier

Returns vs Investment

Debt Freedom Formulas

1Loan Repayment TimeCalculate the number of months required to repay a loan with fixed monthly payments.

Loan Repayment Time

Example:

Variables:

2Total Interest PaidCalculate the total interest paid over the life of a loan.

Total Interest Paid

Example:

Variables:

Frequently Asked Questions

What is goal-based SIP planning?

How does inflation affect my financial goals?

Should I have separate SIPs for different goals?

What if I can't invest the calculated SIP amount?

Can I change my SIP amount during the investment period?

What returns should I expect from equity mutual funds?

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Debt Freedom Fund

Goal vs Achievement

Goal Achievement Chart

Key Insights

Expected Annual Return

Wealth Multiplier

Returns vs Investment

Frequently Asked Questions

What is goal-based SIP planning?

How does inflation affect my financial goals?

Should I have separate SIPs for different goals?

What if I can't invest the calculated SIP amount?

Can I change my SIP amount during the investment period?

What returns should I expect from equity mutual funds?