Inflation-Adjusted SIP Calculator
Understand the real purchasing power of your SIP returns after inflation
Configure Inputs
Nominal vs Real Value
The gap between what you see and what you can buy
Inflation Impact Breakdown
How much of your nominal value is eroded by inflation
Key Insights
Year-by-Year Comparison
Nominal vs inflation-adjusted values
| Year | Invested | Nominal | Real | Inflation Loss |
|---|---|---|---|---|
| Year 1 | ₹1.20 L | ₹1.28 L | ₹1.24 L | -₹4,349 |
| Year 2 | ₹2.40 L | ₹2.72 L | ₹2.55 L | -₹17,756 |
| Year 3 | ₹3.60 L | ₹4.35 L | ₹3.93 L | -₹41,861 |
| Year 4 | ₹4.80 L | ₹6.18 L | ₹5.40 L | -₹78,545 |
| Year 5 | ₹6.00 L | ₹8.25 L | ₹6.95 L | -₹1.30 L |
| Year 6 | ₹7.20 L | ₹10.58 L | ₹8.59 L | -₹1.99 L |
| Year 7 | ₹8.40 L | ₹13.20 L | ₹10.33 L | -₹2.87 L |
| Year 8 | ₹9.60 L | ₹16.15 L | ₹12.16 L | -₹3.99 L |
| Year 9 | ₹10.80 L | ₹19.48 L | ₹14.11 L | -₹5.37 L |
| Year 10 | ₹12.00 L | ₹23.23 L | ₹16.17 L | -₹7.07 L |
| Year 11 | ₹13.20 L | ₹27.46 L | ₹18.34 L | -₹9.12 L |
| Year 12 | ₹14.40 L | ₹32.23 L | ₹20.64 L | -₹11.58 L |
| Year 13 | ₹15.60 L | ₹37.59 L | ₹23.08 L | -₹14.51 L |
| Year 14 | ₹16.80 L | ₹43.64 L | ₹25.66 L | -₹17.98 L |
| Year 15 | ₹18.00 L | ₹50.46 L | ₹28.39 L | -₹22.07 L |
| Year 16 | ₹19.20 L | ₹58.14 L | ₹31.27 L | -₹26.86 L |
| Year 17 | ₹20.40 L | ₹66.79 L | ₹34.33 L | -₹32.46 L |
| Year 18 | ₹21.60 L | ₹76.54 L | ₹37.56 L | -₹38.98 L |
| Year 19 | ₹22.80 L | ₹87.53 L | ₹40.98 L | -₹46.55 L |
| Year 20 | ₹24.00 L | ₹99.91 L | ₹44.60 L | -₹55.32 L |
Calculator results are for illustration purposes only. Actual returns may vary based on market conditions, fund performance, and other factors. Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. Past performance does not guarantee future returns.
What your SIP is really worth after inflation
A projection that says your SIP will grow to ₹1 crore sounds impressive — until you ask what ₹1 crore will buy in twenty years. Inflation steadily erodes the purchasing power of money, so the "real" value of a future corpus, in today’s rupees, is meaningfully lower than the nominal figure. Planning in nominal terms alone quietly overstates how far your money will actually go.
This calculator shows the inflation-adjusted (real) value of a SIP, translating the future corpus back into today’s purchasing power. The rough intuition is that your real return is your nominal return minus inflation — so a 12% nominal return with 6% inflation is closer to a 5.7% real return. Seeing the real number is what keeps a retirement or education goal honest.
How this calculator works
- 1Enter your monthly SIP, expected nominal return, an inflation rate and the horizon.
- 2The calculator projects the nominal corpus, then discounts it by inflation.
- 3It shows the value in today’s rupees — the real purchasing power of your corpus.
Frequently asked questions
What is an inflation-adjusted (real) return?
It is the return after removing the effect of inflation — what your money actually gains in purchasing power. As a close approximation, real return ≈ nominal return − inflation. A 12% nominal return with 6% inflation gives roughly a 5.7% real return, which is a more honest basis for long-term planning.
Why does inflation matter for long-term goals?
Because goals decades away — retirement, a child’s education — will be paid for in future rupees that buy less. A corpus that looks large in nominal terms may fall short in real terms. Planning against inflation-adjusted values ensures the money will actually cover the goal when it arrives.
What inflation rate should I assume?
A general long-term assumption around 6% is common for India, but use a higher rate for categories that inflate faster, such as education and healthcare. It is safer to slightly over-estimate inflation than to under-estimate it and fall short.
Illustrative only; actual inflation and returns vary and are not guaranteed.
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