How to Plan a Europe Trip in 2 Years with ₹5,000 SIP per Month?

Europe is one of the most sought-after travel destinations for Indians, with its rich culture, history, and diverse landscapes. Whether it’s exploring the romantic streets of Paris, admiring art in Florence, or relaxing on the beaches of the Greek Islands, a European vacation offers an unforgettable experience. However, planning a trip to Europe can be costly, and many people struggle to figure out how to save for such an expensive adventure. 

If you are planning to save money, using a Systematic Investment Plan (SIP), then let’s break down how much you need to save for a European vacation and how to estimate your SIP amount to fund your journey. 

Estimate Your Travel Budget 

Before we calculate how much you need to invest, let’s start by estimating the costs of a typical Europe tour. The total expenses can vary depending on the countries you plan to visit, your style of travel, and the length of your stay. 

Here’s a rough estimate for a 10-15 day trip for one person: 

• Flights: Round-trip flights from India to Europe generally range from ₹40,000 to ₹70,000, depending on the time of booking and the airline. 

• Accommodation: Budget accommodations (hostels, guesthouses, or 3-star hotels) can cost ₹3,000 to ₹7,000 per night. A 14-day stay would cost you around ₹42,000 to ₹98,000. 

• Food: If you plan to eat at mid-range restaurants, expect to spend around ₹1,000–₹2,000 per day, which would total ₹14,000–₹28,000 for 14 days. 

• Local Travel: Public transport costs can range from ₹500 to ₹1,500 per day, depending on the cities you visit. For 14 days, this would add up to ₹7,000–₹21,000. 

• Sightseeing and Miscellaneous: Museums, tours, and other attractions typically cost ₹2,000–₹5,000 per day. Over 14 days, this could amount to ₹28,000–₹70,000. 

• Shopping and Souvenirs: This can vary widely depending on your interests, but a reasonable estimate for shopping would be ₹15,000–₹25,000. 

Thus, the estimated cost for a 14-day trip to Europe would be: 

• Low Budget: ₹1,00,000–₹1,50,000 

• Mid-range Budget: ₹1,75,000–₹2,50,000 

• Luxury Budget: ₹2,50,000–₹4,00,000 

How to Estimate Your SIP Requirements? 

Now that you know the potential costs, let’s calculate how much you need to save monthly through an SIP to fund your dream Europe vacation. 

Assume you want to go on your trip in 2 years (24 months). Using an average return rate of 10% per annum, here’s how much you’ll need to invest per month to reach different budget levels. 

For a Low Budget (₹1,00,000 – ₹1,50,000) 

• Target Amount: ₹1,25,000 (an average of ₹1,00,000–₹1,50,000) 

• Time Frame: 24 months 

• Expected Return: 10% per annum 

In this case, if you invest ₹5,000 per month in an SIP, for 2 years at a return rate of 10% per annum, the total value of your investment after 2 years could be ₹1,33,337.  

For a Mid-range Budget (₹1,75,000 – ₹2,50,000) 

• Target Amount: ₹2,00,000 (an average of ₹1,75,000–₹2,50,000) 

• Time Frame: 24 months 

• Expected Return: 10% per annum 

To reach this target, you would need to invest around ₹7,500–₹8,000 per month, where your total value of your investment will be ₹2,00,005 – ₹2,13,338. 

For a Luxury Budget (₹2,50,000 – ₹4,00,000) 

• Target Amount: ₹3,25,000 (an average of ₹2,50,000–₹4,00,000) 

• Time Frame: 24 months 

• Expected Return: 10% per annum 

For this higher budget, you would need to invest around ₹12,000–₹14,000 per month. 

You can use an SIP Calculator to determine the monthly investment required to reach your travel budget, based on your expected returns and investment duration.  

If you start planning a few years in advance, you can reduce the monthly SIP amount. For example, for a 3-year (36 months) time frame, you could reduce the monthly investment by around 30-40%, making it more affordable. For a ₹2,00,000 target, you would only need to invest around ₹5,000–₹6,000 per month. 

Also Read: Can SIPs Help You Save ₹25 Lakh in 10 Yrs for Your Child’s Education? 

Final Thoughts 

Planning a Europe trip doesn’t have to be overwhelming. By breaking down your expenses and estimating the monthly SIP amounts, you can make the dream vacation financially feasible. Whether you opt for a low-budget trip or a more luxurious experience, setting up an SIP early on ensures that you save regularly and earn returns on your investments. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.