Investments

Inflation-Adjusted SIP

The honest SIP calc. ₹1 crore in 20 years sounds great — but at 6% inflation it has the buying power of just ₹31 lakh today. This calc shows both nominal and real values side by side, so you plan goals in actual purchasing power.

Inputs

₹
₹500₹2.00 L
%
4%25%
%
1%12%
yr
1 yr40 yr
Nominal future value
₹99,91,479
What the corpus will say on screen
Real value (today's purchasing power)
₹31,15,390
What it can actually buy at today's prices
Real return rate
5.66%
Power lost to inflation
₹68,76,089

Nominal vs Real wealth

Gold = nominal corpus, Mint = real (inflation-adjusted) value

FAQs

What is real return vs nominal return?

Nominal return is the headline number — 12% return. Real return adjusts for inflation: at 6% inflation, your true purchasing power gain is only ~5.7% (nominal − inflation, more precisely (1+nominal)/(1+infl) − 1). Real return is what your money actually grows in terms of buying power.

Why does my "real" corpus look so much smaller?

A ₹1 crore corpus 20 years from now will buy what only ~₹31 lakh buys today (at 6% inflation). The number on screen looks big, but inflation has eaten most of it. Always plan goals in real (today's) rupees, not nominal future numbers.

How do I plan for retirement using this?

Estimate your future yearly expense in today's rupees. Multiply by 25× for FIRE corpus. Use this calc with your nominal return assumption to find the SIP needed — but verify the real value matches your real-rupee target.

Is 6% inflation realistic for India?

Yes — long-term CPI average. RBI targets 4% (with 2–6% band). Healthcare and education inflate faster (8–10%) — for those goals use higher inflation rate. Short-term inflation can be lower (RBI projects 2.1% for FY 26-27) but mean-reverts.