SIP Calculator with Inflation Adjustment
See both nominal and inflation-adjusted (real) SIP returns. Your ₹1 crore corpus in 20 years won't buy what ₹1 crore buys today—this calculator shows the difference.
Inflation Impact on SIP — Comparison Table
At 12% nominal return and 6% inflation, here's what your SIP corpus is really worth in today's purchasing power.
| Monthly SIP | Years | Nominal Value | Real Value (today's ₹) | Retained Power |
|---|---|---|---|---|
| ₹5,000 | 10 | ₹11,61,695 | ₹6,48,685 | 56% |
| ₹5,000 | 15 | ₹25,22,880 | ₹10,52,710 | 42% |
| ₹5,000 | 20 | ₹49,95,740 | ₹15,57,695 | 31% |
| ₹5,000 | 25 | ₹94,88,175 | ₹22,10,732 | 23% |
| ₹5,000 | 30 | ₹1,76,49,569 | ₹30,72,969 | 17% |
| ₹10,000 | 10 | ₹23,23,391 | ₹12,97,369 | 56% |
| ₹10,000 | 15 | ₹50,45,760 | ₹21,05,419 | 42% |
| ₹10,000 | 20 | ₹99,91,479 | ₹31,15,390 | 31% |
| ₹10,000 | 25 | ₹1,89,76,351 | ₹44,21,464 | 23% |
| ₹10,000 | 30 | ₹3,52,99,138 | ₹61,45,937 | 17% |
| ₹25,000 | 10 | ₹58,08,477 | ₹32,43,423 | 56% |
| ₹25,000 | 15 | ₹1,26,14,400 | ₹52,63,548 | 42% |
| ₹25,000 | 20 | ₹2,49,78,698 | ₹77,88,476 | 31% |
| ₹25,000 | 25 | ₹4,74,40,877 | ₹1,10,53,659 | 23% |
| ₹25,000 | 30 | ₹8,82,47,844 | ₹1,53,64,844 | 17% |
Why Inflation-Adjusted SIP Returns Matter
Most SIP calculators show you a comforting big number—"your ₹10,000 monthly SIP will be worth ₹1 crore in 20 years"—but they don't tell you what ₹1 crore will buy in 2046. A cup of tea that costs ₹20 today may cost ₹65 by then. A ₹50 lakh house today may cost ₹1.6 crore. That ₹1 crore corpus won't feel like ₹1 crore does today. This is why inflation-adjusted returns are the only numbers that matter for real-world planning.
India has averaged around 6% CPI inflation over the past two decades. Certain categories—healthcare, education, premium real estate—inflate at 8–10% annually. If you're planning for your child's education 18 years from now, assume education inflation of 10%, not general inflation of 6%. A ₹20 lakh engineering degree today may cost ₹1.1 crore when your child reaches college age. Your SIP target must be calibrated to that future number, not today's cost.
The mathematical framework is simple: real return rate ≈ (1 + nominal rate)/(1 + inflation) − 1. For a 12% nominal return and 6% inflation, the real return is about 5.66%. This is still a strong number—it means your wealth roughly doubles in purchasing power every 12–13 years. But it's a different story than the naive 12% headline. Over 30 years, 5.66% real returns compound to roughly 5.2× purchasing power, not the 30× suggested by ignoring inflation.
Asset class selection matters more in the presence of inflation. Fixed deposits at 7% nominal return barely keep pace with 6% inflation—your real return is a paltry 0.9%. Over 20 years, FD purchasing power grows just 1.2×. Compare that to equity SIP at 12% nominal returning roughly 3.0× real purchasing power. The gap between "feeling safe" (FD) and "actually building wealth" (equity SIP) is the gap between real return rates, not nominal ones.
Practical rule: When setting long-term goals, always inflate your target. A ₹50 lakh retirement corpus today equates to roughly ₹1.6 crore at 6% inflation over 20 years. Plan to reach the inflated number, not the current-rupee number. Our calculator handles this inversion if you start from a real (today's-money) goal.
Inflation-Adjusted SIP FAQs
Is 6% a safe inflation assumption for India?
6% is the long-term CPI average and a reasonable default. For short-term goals (3–5 years), use the most recent RBI inflation data. For goals involving healthcare or higher education, model 8–10% because those categories consistently inflate faster than CPI.
Does inflation erode my actual money or just the value?
Inflation doesn't touch your rupee count—your ₹1 crore corpus remains ₹1 crore. But each rupee buys less. "Real value" measures what your money will buy, not how many rupees you have.
Should I increase SIP to offset inflation?
Yes. A 10% annual step-up effectively neutralizes 6% inflation on your contributions and improves the inflation-adjusted outcome substantially. Pair step-up with inflation-adjusted planning for the best result.
How do I convert today's goal to future rupees?
Future value = Today's value × (1 + inflation)^years. For a ₹50 lakh goal in 20 years at 6% inflation, the future target is ₹50 lakh × (1.06)^20 ≈ ₹1.6 crore.