Imagine saving diligently for years, only to realize that the amount you planned for isn’t enough because prices have skyrocketed. Sounds frustrating, right? That’s exactly why using a regular SIP calculator might give you a misleading picture of your future wealth.
A Systematic Investment Plan (SIP) Calculator with Inflation helps you see the real value of your investments by adjusting for rising costs over time. It’s like looking at your financial future with clear glasses instead of a foggy lens—you get a realistic estimate of what your money will actually be worth when you need it.
If you’ve ever wondered, “Am I saving enough?”, then this tool is your answer. Let’s break it down in a simple way so that financial planning feels less like math and more like a life-changing decision.
Most people use a standard SIP calculator to estimate how much they’ll earn from monthly investments in mutual funds. But here’s the problem:
✔️ It assumes a fixed return rate, ignoring inflation.
✔️ It doesn’t account for the fact that ₹10 lakh today won’t buy the same things 10 years from now.
✔️ It gives an inflated sense of wealth, leading to under-saving.
Reality check: Let’s say you invest ₹5,000 per month in an SIP for 15 years, expecting a 12% annual return. A normal SIP calculator will show you a future value of around ₹50 lakhs. Sounds great, right?
But what if inflation averages 6% per year? The actual value of that ₹50 lakhs in today’s terms will be much lower—probably around ₹21-25 lakhs in real purchasing power. That’s a huge difference!
This upgraded version of the SIP calculator adjusts your investment’s future value based on inflation, giving you a realistic picture of what you’ll actually be able to afford.
Instead of just using the standard SIP formula:
FV = P × [ ((1 + i)n – 1) / i ] × (1 + i)
where:
The SIP Calculator with Inflation applies another formula to adjust for inflation:
Adjusted FV = FV / (1 + inflation)tenure
where:
Let’s assume:
✔️ SIP Amount: ₹5,000 per month
✔️ Investment Period: 15 years
✔️ Expected Return: 12% per year
✔️ Inflation Rate: 6% per year
Now, ask yourself—is ₹21-25 lakhs enough for your future needs? If not, you need to increase your SIP amount to compensate for inflation.
Using an SIP calculator without inflation is like running a marathon and stopping at the 30 km mark, thinking you’ve finished—when in reality, there’s still 12 km left to go. You need the full picture to make smarter decisions. You can try a more advanced tool step-up-sip-calculator-with-inflation.
✔️ It gives a realistic picture – No false hopes, only actual wealth projection.
✔️ Helps in goal-based planning – Whether it’s your child’s education, retirement, or a dream home, you’ll know how much to save.
✔️ Prepares you for rising costs – Medical bills, education fees, and daily expenses won’t feel like a shock in the future.
✔️ Encourages smarter investing – If the real value of your money is lower than expected, you’ll increase your SIP contributions accordingly.
Using this tool is as simple as ordering food online—just follow these steps:
The good news? You don’t need to be a finance expert to use one! Many platforms offer free online SIP calculators , including:
✔️ Mutual fund AMCs – HDFC, ICICI, SBI Mutual Fund
✔️ Investment platforms – Zerodha Coin, Groww, Paytm Money
✔️ Personal finance websites – Moneycontrol, ET Money
However i find the website “mutualfundsipcalculator.in ” to be the best one.
Money saved today is not the same as money spent tomorrow. If you truly want to secure your future, don’t fall into the trap of overestimating your wealth. The smartest investors don’t just look at numbers—they factor in reality.
Using an SIP calculator with inflation is the easiest way to ensure that your hard-earned money actually holds value when you need it. Whether you’re planning for retirement, your child’s future, or simply financial independence, make sure you’re looking at the real picture, not just a dream.
Remember, planning without inflation is like building a house without a foundation—it may look good on paper but won’t stand strong in reality. So, next time you use an SIP calculator, make sure it adjusts for inflation!
A standard SIP calculator only considers the expected return rate, assuming that money holds the same value over time. It doesn’t factor in how inflation reduces purchasing power.
Historically, inflation in India ranges from 4-6% per year. For conservative estimates, use 5-6%.
Absolutely! SIPs remain one of the best investment options. You just need to adjust your monthly SIP amount to stay ahead of inflation.
Platforms like Groww, Zerodha, HDFC Mutual Fund, and Moneycontrol provide this feature for free. However “mutualfundsipcalculator.in” is the best one
Increase your SIP amount periodically—at least 10% every year—so your future savings maintain their purchasing power.
A standard SIP (Systematic Investment Plan) calculator does not account for inflation or taxes—it simply calculates future returns based on a fixed expected return rate. This can be misleading because, in reality, inflation erodes the purchasing power of your money, and taxes can take a bite out of your profits. However, if you want a more realistic picture of your wealth accumulation, you should use an SIP calculator with inflation adjustment. This tool helps you understand the actual value of your investment after factoring in inflation. For more details on this check out this.