How Much Should You Invest in a SIP Every Month?

There is no single right amount. The right SIP is the one your goal needs and your income can support through a bad year.

How much do I need to invest for my goal?

Start from the target. The table shows the monthly SIP needed at an assumed 12% a year:

Remember to add inflation to the target first. For your own numbers, use the SIP Need Calculator.

How much can I afford?

Use the 50-30-20 rule, where savings make up about 20% of take-home pay. Before setting your SIP, make sure you have an emergency fund, cover your insurance and clear any high-interest debt.

What if the two numbers do not match?

1. Start lower and step up. A SIP raised 10% each year can reach about twice the amount of a flat one over 20 years. Try the Step-Up Calculator.
2. Extend the timeline. Five extra years often cuts the monthly figure by half.
3. Adjust the goal. A smaller target reached with certainty beats a large one you abandon.

Avoid solving the gap by assuming a higher return. That only changes the spreadsheet, not the outcome.

How often should I change the amount?

Review it once a year, ideally after your increment. Stopping or cutting it because markets fell is the one change to avoid, since that is when each rupee buys the most units.