India's CPI has averaged around 5–6% over the last decade. Education and healthcare inflate faster (8–10%), so use a higher rate for those goals.
SIP Calculator with Inflation
A ₹1 crore corpus in 2045 will not buy what ₹1 crore buys today. This calculator shows your SIP outcome in real terms: the nominal value, the inflation-adjusted value in today's rupees, and the gap between them.
Nominal value
₹49,95,740
Value in today's rupees
₹15,57,695
Purchasing power lost to inflation
₹34,38,045
Invested amount
₹12,00,000
Real return (p.a.)
5.66%
Nominal vs real value, year by year
| Year | Invested | Nominal value | In today's ₹ | Gap |
|---|---|---|---|---|
| 1 | ₹60,000 | ₹64,047 | ₹60,422 | ₹3,625 |
| 2 | ₹1,20,000 | ₹1,36,216 | ₹1,21,232 | ₹14,984 |
| 3 | ₹1,80,000 | ₹2,17,538 | ₹1,82,649 | ₹34,889 |
| 4 | ₹2,40,000 | ₹3,09,174 | ₹2,44,895 | ₹64,279 |
| 5 | ₹3,00,000 | ₹4,12,432 | ₹3,08,193 | ₹1,04,239 |
| 6 | ₹3,60,000 | ₹5,28,785 | ₹3,72,773 | ₹1,56,012 |
| 7 | ₹4,20,000 | ₹6,59,895 | ₹4,38,868 | ₹2,21,027 |
| 8 | ₹4,80,000 | ₹8,07,633 | ₹5,06,719 | ₹3,00,914 |
| 9 | ₹5,40,000 | ₹9,74,108 | ₹5,76,573 | ₹3,97,535 |
| 10 | ₹6,00,000 | ₹11,61,695 | ₹6,48,684 | ₹5,13,011 |
| 11 | ₹6,60,000 | ₹13,73,074 | ₹7,23,318 | ₹6,49,756 |
| 12 | ₹7,20,000 | ₹16,11,261 | ₹8,00,747 | ₹8,10,514 |
Show all 20 rows
| 13 | ₹7,80,000 | ₹18,79,656 | ₹8,81,256 | ₹9,98,400 |
| 14 | ₹8,40,000 | ₹21,82,090 | ₹9,65,141 | ₹12,16,949 |
| 15 | ₹9,00,000 | ₹25,22,880 | ₹10,52,710 | ₹14,70,170 |
| 16 | ₹9,60,000 | ₹29,06,891 | ₹11,44,287 | ₹17,62,604 |
| 17 | ₹10,20,000 | ₹33,39,604 | ₹12,40,210 | ₹20,99,394 |
| 18 | ₹10,80,000 | ₹38,27,196 | ₹13,40,834 | ₹24,86,362 |
| 19 | ₹11,40,000 | ₹43,76,627 | ₹14,46,532 | ₹29,30,095 |
| 20 | ₹12,00,000 | ₹49,95,740 | ₹15,57,695 | ₹34,38,045 |
How the SIP Calculator with Inflation works
The nominal projection is the usual SIP formula. The real value then deflates that figure by (1 + inflation)^years, converting it into rupees with today's purchasing power.
The real return is not simply return minus inflation: it is (1 + r) ÷ (1 + π) − 1. At 12% return and 6% inflation the real return is 5.66%, not 6%.
Use the real value to size goals — education, a house, retirement — since those costs inflate too.
Real value = Nominal FV ÷ (1 + π)^n Real return = (1 + r) ÷ (1 + π) − 1
- π
- annual inflation
- r
- nominal annual return
- n
- years
Worked example
- Monthly investment: ₹5,000
- Expected return (p.a.): 12%
- Expected inflation (p.a.): 6%
- Time period: 20 Yr
A ₹5,000 SIP for 20 years at 12% grows to about ₹50 lakh. At 6% inflation that is worth only about ₹15.6 lakh in today's money — the ₹34 lakh gap is why planning in nominal rupees overstates what you will actually be able to buy.