SIP Calculator with Inflation

See how inflation erodes your SIP returns in real terms

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Monthly SIP₹10,000
Annual Return12 %
Annual SIP Step-up10 %
Investment Period20 yrs
Expected Inflation6 %

Nominal Corpus

78.38 L

Real Value (Today's ₹)

24.44 L

What's the difference?

Inflation of 6% over 20 years reduces purchasing power by 69%. Your nominal corpus looks bigger but buys less. The step-up SIP partially counteracts this.

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How this calculator works

Most SIP calculators show you a big, satisfying number — the nominal corpus. But ₹2 Crore in 2045 is not the same as ₹2 Crore today. This calculator shows you both: what you'll have, and what it will actually buy. Nominal corpus is your investment's face value — the sum you'd see in your demat account. Real corpus (or inflation-adjusted corpus) tells you the purchasing power of that sum in today's money. The formula: Real Value = Nominal Value ÷ (1 + inflation)^years Step-up SIP (also called increasing SIP) is the strategy of increasing your monthly SIP by a fixed percentage each year, matching your salary growth. A ₹10,000 SIP with a 10% annual step-up becomes ₹25,937 in 10 years. The compounding effect on a step-up SIP is dramatically higher than a flat SIP. The real vs. nominal gap is India's most underappreciated wealth destroyer. At 6% inflation, ₹1 Crore loses half its purchasing power in just 12 years. A step-up SIP that at least matches inflation gives your corpus a fighting chance.

Frequently Asked Questions

What is the difference between nominal and real SIP returns?⌄

Nominal returns are what you see on paper — the raw rupee value. Real returns are adjusted for inflation and show you the actual purchasing power of your money. At 6% inflation, even a strong nominal corpus loses significant value over 20+ years.

What is a step-up SIP?⌄

A step-up SIP (or increasing SIP) is where you automatically increase your monthly SIP amount by a fixed percentage each year — typically 10–15% to match salary growth. This dramatically improves your final corpus compared to a flat SIP.

What SIP return can I realistically expect from mutual funds in India?⌄

Equity mutual funds (large-cap index funds) have historically delivered 10–13% CAGR over 10+ year periods in India. Debt funds deliver 6–8%. A balanced 70/30 portfolio might average 10–11% over a long horizon.

How much SIP do I need to build ₹1 Crore?⌄

At 12% annual return over 15 years, you need approximately ₹15,000/month. Over 20 years, just ₹7,500/month. Over 25 years, ₹4,000/month. Start early — time is the most powerful variable in SIP calculations.

Does inflation reduce my SIP returns?⌄

Inflation does not reduce your nominal SIP returns, but it reduces your real purchasing power. If your fund returns 12% and inflation runs at 6%, your real return is approximately 12% − 6% = 6% per year. This calculator makes that gap visible.