SIP Calculator — Inflation-Adjusted Real Returns
The nominal SIP corpus everyone shows you — plus the number they usually leave out: what that corpus is actually worth after inflation, shown side by side.
Want just the loan side of the math? Try the Advanced EMI Calculator instead.
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Nominal corpus at maturity
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- Total invested
- {{ fmt(result.totalInvested) }}
- Wealth gained
- {{ fmt(result.wealthGained) }}
- Real (today's-rupee) corpus
- {{ fmt(result.realFV) }}
- Real rate of return
- {{ result.realReturnPercent }}%
Your expected return is below your assumed inflation — the real corpus above is worth less, in today's purchasing power, than the total you invest, even though the nominal number grows.
Nominal vs. real growth, year by year
The gap between the two lines is inflation eating into what the corpus can actually buy — it widens every year, not just at the end.
| Year | Invested this year | Total invested | Nominal balance | Real balance |
|---|---|---|---|---|
| {{ r.year }} | {{ fmt(r.investedThisYear) }} | {{ fmt(r.totalInvested) }} | {{ fmt(r.closingBalance) }} | {{ fmt(r.realClosingBalance) }} |
Enter a monthly amount, expected return and duration above to get started.
Every calculation runs in your browser. Nothing you enter is uploaded to a server.
Nominal vs. real — why both numbers matter
The nominal corpus uses the standard SIP future-value formula: each monthly contribution compounds at
your expected return until maturity. It's correct — and it says nothing about what that money will
actually be worth. The real corpus divides the nominal figure by cumulative inflation over the same
period, showing today's purchasing power instead. The real rate of return, ((1 + nominal) /
(1 + inflation)) − 1, is what to compare against other investments on a like-for-like basis.
With a step-up, the monthly contribution itself changes over time, so there is no closed-form shortcut — the schedule is built month by month, the same way the Advanced EMI Calculator's prepayment schedule is, and the no-step-up case is checked to agree with the closed-form formula exactly.
Why the inflation assumption matters as much as the return assumption
A SIP calculator that only asks for an expected return is answering half the question — the same nominal corpus is a very different outcome depending on inflation, and treating one assumption as fact while ignoring the other overstates what a plan actually delivers. This tool asks for both, defaults inflation to a commonly used long-run figure rather than a fact, and lets you see the real rate of return as its own number, not just a note buried under the headline corpus.
Frequently asked questions
Why show a "real" corpus at all — isn't the nominal number correct?
The nominal number is correct, and also incomplete. It says what the account balance will read, not what that money will buy. Dividing by cumulative inflation over the same years converts it to today's purchasing power — the real corpus is usually the more meaningful number for planning.
What inflation rate should I use?
There is no universally correct number — 6% is a commonly used long-run assumption for India, shown as a starting default you should adjust to your own view, not treated as a fact.
What happens if my expected return is lower than inflation?
The real rate of return goes negative — your money grows in nominal terms but loses purchasing power over the period. The tool states this plainly rather than only showing the nominal figure.
How does the step-up option work?
Your monthly contribution increases by the percentage you set at every 12-month anniversary. Because the contribution itself changes over time, there's no closed-form shortcut for this case — it's calculated month by month.
Does the nominal figure match other SIP calculators?
It should, for the same inputs — it uses the standard closed-form SIP future value formula, cross-checked in this tool's own test suite against a full month-by-month schedule to confirm the two never disagree.