SIP Calculator with Inflation Adjustment
How to Use SIP Calculator with Inflation Adjustment
Choose your calculation mode: Standard SIP (wealth accumulation) or Target Goal SIP (compute monthly deposit needed for a specific future target).
Enter your monthly SIP amount, expected annual return rate (CAGR), and investment time horizon in years.
Toggle Inflation Adjustment ON to compute your real purchasing power in today's money and see how much value inflation erodes.
Optionally enable Annual Step-Up (Top-Up SIP) to simulate increasing your monthly investment by 5-15% annually as your income rises.
Analyze the interactive asset growth curve, donut composition, crossover milestone, and download your complete year-by-year schedule as CSV.
SIP Calculator with Inflation Adjustment runs 100% client-side in your web browser. None of your financial figures, bank accounts, income details, loan amounts, or personal tax data are transmitted to any server or saved in cookies. Calculations happen entirely on your local device.
Frequently Asked Questions
Why is inflation adjustment critical when calculating SIP returns?
A future corpus of $1,000,000 or ₹1 Crore sounds impressive today, but after 20 years of 6% annual inflation, everyday goods and services will cost over 3.2x more. In today's purchasing power, that $1M will only buy roughly $311,800 worth of lifestyle. Inflation adjustment reveals your true real wealth.
What is Step-Up (Top-Up) SIP and why should I use it?
A Step-Up SIP automatically increases your monthly investment contribution by a fixed percentage (e.g. 10%) or fixed amount each year. Because salaries typically rise annually, stepping up your SIP harnesses compounding on a growing principal base, often increasing your final maturity wealth by 40% to 70%.
What is the Compounding Crossover point?
The compounding crossover point is the milestone year in your SIP journey when the annual interest and capital gains earned by your accumulated portfolio exceed your total annual fresh contributions. From this point onward, your money works harder than your active deposits.
What expected annual return rate should I use for equity mutual funds?
Historically, diversified broad-market equity index funds (such as S&P 500 or Nifty 50) have delivered average annualized returns (CAGR) between 10% and 13% over 10-20+ year horizons. Conservative hybrid funds typically average 8-10%, while aggressive small/mid-cap funds may target 13-16% with higher volatility.
What is the 4% Safe Withdrawal Rule shown in the calculator?
The 4% rule (from the Trinity Study) suggests that a retiree can safely withdraw 4% of their total investment portfolio in year one, adjusted for inflation thereafter, with an extremely high probability of never exhausting the capital over a 30-year retirement.
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