Financial Calculators
Inflation-Adjusted SIP Calculator
The statement will show one number. The grocery store will respect another. Plan with the second one.
Corpus in today's purchasing power
₹31,15,390
- Nominal corpus on paper
- ₹99,91,479
- Eaten by inflation
- ₹68,76,089
The nominal figure is what the statement will show; the real figure is what it will buy in today's rupees. Planning with real numbers is what keeps goals honest.
Nominal is vanity, real is sanity
A SIP projection in nominal rupees flatters the future: a crore twenty years away is not today's crore. Deflating the corpus by inflation shows its real purchasing power, the only number goals should be set in.
The gap between the two lines is not a flaw in investing; it is precisely why investing in growth assets matters. At 12% nominal against 6% inflation, real wealth still compounds at roughly 5.7% a year, which cash and most deposits cannot say.
Nominal and real
Nominal corpus = SIP annuity-due FV(return, years)\nReal corpus = nominal / (1 + inflation)^yearsWorked example: a Rs 10,000 SIP at 12% for 20 years shows Rs 99,91,479 on paper; at 6% inflation its purchasing power is about Rs 31,15,390 in today's rupees, with Rs 68,76,089 of face value eaten by inflation.
Frequently asked questions
Which number should I plan goals with?
State goals in today's rupees, inflate the goal to its date, and target that. Or equivalently, compare the real corpus here against today's goal cost; both methods agree.
Does inflation mean SIPs are not worth it?
The opposite. Inflation is exactly why money must grow faster than prices; the real corpus here still triples the amount invested, which idle money never would.
What inflation rate should I use?
Six percent is a fair long-run assumption for household inflation in India; education and healthcare run higher, so use 8-10% for those specific goals.
How do I defend the corpus against inflation?
Step up the SIP with increments and keep long-horizon money in growth assets. A static SIP quietly shrinks in real terms every year.
Plan in the rupees that buy things.
Every plan we build is inflation-adjusted by default. It is the only honest way.