SIP Calculator
What a monthly investment grows to — and what that pile is actually worth once inflation has had its turn.
Raising the SIP each year as income grows
Read the second number, not the first
Every SIP calculator shows a large corpus at the end. Almost none show what it buys. At 6% inflation, money halves in purchasing power roughly every twelve years — so a crore in twenty years is worth about thirty lakh in today's terms. The inflation-adjusted row is the honest one.
The other thing to hold loosely is the return rate. 12% is the number the industry quotes for equity, drawn from long historical averages. Real returns arrive unevenly: several flat years, then a sharp one. A projection is a shape, not a schedule, and the further out you go the more it is an argument for consistency than a forecast.
Tax is not modelled here. Equity gains over ₹1.25 lakh a year
are taxed at 12.5% long-term. On a large corpus withdrawn at once that is a real
subtraction from the figures above.