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Inflation-Adjusted SIP Calculator

A stepped-up SIP with the result stated in today money. A large nominal corpus twenty years out buys much less than it appears to, and the step-up is what keeps the contribution real.

Also called: step up sip calculator, real return sip.

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Corpus in today money
₹1,55,03,489

₹4,97,21,789 nominally, worth ₹1,55,03,489 in today money after 6% inflation over 20 years. Inflation removes ₹3,42,18,300 of purchasing power, which is 68.82% of the headline figure.

Nominal corpus
₹4,97,21,789
Purchasing power lost
₹3,42,18,300
Share lost to inflation
68.82%
Total invested
₹1,71,82,500
Final monthly SIP
₹1,52,898
Real return
5.66%
How this is calculated

An estimate, not an offer or a guarantee. Projected returns assume the rate you entered holds for the whole term, which no market does.

Method and background

This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for India change on a published schedule; the effective date is shown on every rule-based tool.

How this is calculated

The SIP rises by the step-up rate each year and the corpus compounds at the expected return. The result is then discounted by inflation to state it in current purchasing power, which is the only figure that means anything for planning. The step-up matters for the same reason: a fixed SIP shrinks in real terms every year, so stepping up with income keeps the contribution constant in what it actually buys.

discount the nominal corpus by inflation to see what it actually buys
pi
Inflation

Worked examples

Each of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.

twenty years with a ten percent step-up

Starting monthly SIP
₹25,000
Annual step-up
10%
Years
20
Expected return
12%
Inflation
6%

Corpus in today money₹1,55,03,489

1.12/1.06 - 1, not 12 - 6

Open this example

no inflation leaves the nominal figure intact

Starting monthly SIP
₹25,000
Annual step-up
10%
Years
20
Expected return
12%
Inflation
0%

Corpus in today money₹4,97,21,789

boundary

Open this example

Method and limits

What it assumes

  • Constant return and constant inflation, neither of which is realistic.

What it deliberately does not model

  • Real returns are far more variable than this suggests.
  • Personal inflation differs from headline inflation, often considerably.

Formula version 1.0.0 · definition 1.0.0 · India · Report a problem with this calculator

Frequently asked questions

Why show the corpus in today money?
Because a five crore corpus in twenty years is not five crore of buying power. At six percent inflation it is about 1.56 crore in current terms, which changes what you conclude.