SIP Calculator with Inflation Adjustment
Calculate your SIP returns and understand the real value of your investment after adjusting for inflation
Investment Parameters
Investment Results
Investment Summary
Inflation Erodes Purchasing Power
Inflation reduces the purchasing power of your corpus over time. What costs ₹100 today might cost ₹180 after 10 years at 6% inflation. Your investment returns need to beat inflation to maintain real wealth.
Real Return = Nominal Return - Inflation
If your SIP generates 12% returns but inflation is 6%, your real return is only 6%. This calculator shows what your maturity value will actually be worth in today's terms.
Plan for Real Goals
When planning for retirement, children's education, or other long-term goals, consider inflation-adjusted values to ensure you accumulate enough corpus to meet your actual future needs.
Example Impact
A ₹50 lakh corpus after 20 years might only have the purchasing power of ₹15-20 lakhs in today's terms if inflation averages 6% annually. Always consider the real value of your investments!
Key Takeaways
- Inflation is the silent wealth killer that reduces your money's buying power
- Always consider real returns (after inflation) when planning investments
- Higher inflation means you need higher returns to maintain purchasing power
- Use inflation-adjusted values for realistic financial goal planning
SIP Maturity Amount Formula
Where:
FV = Future Value (Maturity Amount)
P = Monthly SIP Amount
r = Monthly Rate of Return (Annual Rate ÷ 12 ÷ 100)
n = Total Number of Months (Years × 12)
Example Calculation
Monthly SIP: ₹5,000
Duration: 10 years (120 months)
Expected Return: 12% per annum
Monthly Rate (r): 12 ÷ 12 ÷ 100 = 0.01
Maturity Amount: ₹11,61,695
Inflation Adjustment Formula
Where:
Real Value = Inflation-adjusted Future Value
FV = Nominal Future Value (from SIP formula)
i = Annual Inflation Rate (as decimal)
t = Time Period in Years
Inflation Impact Example
Maturity Amount: ₹11,61,695
Inflation Rate: 6% per annum
Time Period: 10 years
Inflation Factor: (1.06)¹⁰ = 1.79
Real Value: ₹6,49,273
Purchasing Power Loss: ₹5,12,422
Total Investment
Monthly SIP × Number of Months
Wealth Gained
Maturity Amount - Total Investment
Real Return Rate
Nominal Return - Inflation Rate
💡 Pro Tips for SIP Planning
- Start your SIP early to benefit from the power of compounding over longer periods
- Consider step-up SIPs that increase your investment amount annually with your income growth
- Review and adjust your SIP amount periodically to account for inflation and changing goals
- Diversify across different asset classes to reduce risk and potentially beat inflation consistently