Simulation · India · Mutual fund SIP
SIP Calculator with Inflation — Simulate Real Corpus in Today’s Rupees
People search “sip calculator with inflation” because the fund app only shows a nominal corpus. Below is a simulation path: same SIP → inflation on → LTCG on → read real CAGR. Then copy the steps into the free tool.
Open the simulator: SIP calculator → See what you keep after LTCG · Related: nominal vs real CAGR & LTCG · compare same ₹/month in RD
Disclaimer: Equity returns are not guaranteed. Illustrations use assumed CAGR and inflation — not forecasts. Tax rules change; verify LTCG with a CA.
The three screens of a useful SIP simulation
- Estimated corpus — fund-app style number at your assumed return.
- After LTCG — what you may keep after equity tax on gains (rules/exemptions vary).
- In today’s rupees — same corpus deflated by your inflation assumption.
If you only look at step 1, you are planning with a brochure. Steps 2–3 are why SmartFinance exists.
Worked simulation: ₹10,000/mo · 12% · 10 years · 6% inflation
Assumed equity-like return of 12% p.a. (not a promise). Rough order of magnitude:
| Metric | Approx. reading | Where in the calculator |
|---|---|---|
| Total invested | ₹12,00,000 (120 × ₹10k) | “You invest” under corpus |
| Pre-tax corpus @12% | ~₹23L (wealth gain ~₹11L) | Primary “Estimated corpus” |
| After LTCG (illustrative) | Corpus drops by estimated tax on gains | Apply tax under beat-two |
| At 6% inflation | Purchasing power far below the ~₹23L headline | Apply inflation · “today’s money” |
| Real CAGR | Nominal 12% becomes a lower real rate | Return ladder: Nominal → After tax → Real |
Run it live: Open SIP calculator. Set monthly ₹10,000, return 12%, duration 10Y. Expand See what you keep after LTCG. Toggle Apply tax (default LTCG rate in the tool) and Apply inflation at 6%. Read the ladder before you change the SIP amount.
Stress-test inflation (same SIP, three CPI guesses)
Do not argue about “the right inflation.” Simulate a band:
| Inflation toggle | What you are testing | Action |
|---|---|---|
| 5% | Mild CPI / soft landing | Set inflation 5% · Apply on |
| 6% | Common long-term India planning guess | Set 6% · watch real CAGR |
| 7–8% | Education / medical cost inflation | Raise inflation · see if SIP size is enough |
If real CAGR collapses at 7%, the fix is usually higher SIP or longer tenure — not a prettier chart. Change one input at a time in the tool.
Add LTCG (second toggle) — then re-read inflation
Inflation alone is incomplete if redemption tax is ignored. Order that matches decision-making:
- Corpus with both toggles off — fund-app baseline.
- Tax on, inflation off — post-LTCG rupees.
- Tax on, inflation on — post-tax purchasing power (the number that funds the goal).
Deeper tax language: SIP nominal vs real CAGR and LTCG.
5-minute checklist
- Open sip-calculator.html.
- Enter your real monthly SIP, expected return, and years.
- Note the primary corpus (pre-tax).
- Open See what you keep after LTCG.
- Apply tax → Apply inflation → read Nominal → After tax → Real.
- Optional: same ₹/month in the RD calculator with tax + inflation on — compare real yield, not slogans.
When this simulation changes the plan
- Real CAGR near FD/RD post-tax levels → equity SIP needs longer horizon or higher contribution.
- Goal is a fixed-date expense in <5 years → model a safer sleeve in FD / RD instead of stretching equity assumptions.
- You only cared about “₹1 crore corpus” → re-run with inflation on; you may need a higher SIP for the same lifestyle.
Frequently asked questions
-
What does a SIP calculator with inflation show?
Nominal corpus plus the same amount in today’s rupees at your CPI assumption — so goals are sized in purchasing power.
-
Should I also apply LTCG?
Yes for decision-grade planning. Use both toggles under “See what you keep after LTCG” in the SIP calculator.
-
What inflation rate should I use?
Stress-test 5%, 6%, and 7%+. Education goals often need a higher assumption than general CPI.