SIP Calculator with Inflation Impact
Plan your investment growth with precision. Understand real purchasing power with inflation adjustments, combine regular SIPs with lump sums, and compare multiple scenarios side-by-side.
SIP Deep Dive
What a SIP calculator tells you
A SIP calculator estimates how regular contributions could grow over a chosen period. Enter the instalment, duration and assumed return to see the projected value, money contributed and calculated growth.
A Systematic Investment Plan is a way to invest regularly, commonly in a mutual fund. It is a contribution method rather than a separate product. AMFI explains this distinction in its investor education material. [1]
How the SIP formula works
For a fixed monthly instalment paid at the beginning of each month:
FV = P × [((1 + i)n − 1) ÷ i] × (1 + i)
P is the monthly instalment, i is the annual percentage input divided by 100 and then by 12, and n is years × 12. An initial lump sum grows separately for the full period and is added to the result. At zero return, the final value equals the total contributed.
The default monthly calculation adds each contribution before that month's growth. A 12% annual input becomes 1% a month, equivalent to 12.68% over a full year. This convention differs from converting an effective annual return into a monthly equivalent.
A worked monthly SIP example
With no starting lump sum or step-up, ₹10,000 invested at the beginning of every month at an assumed 12% annual input produces these estimates:
| Duration | Total contributed | Projected value |
|---|---|---|
| 10 years | ₹12.00 lakh | ₹23.23 lakh |
| 15 years | ₹18.00 lakh | ₹50.46 lakh |
| 20 years | ₹24.00 lakh | ₹99.91 lakh |
The rate demonstrates the calculation; it is not an expected return for a particular fund. Each earlier instalment compounds for longer than a later one.
What changes in a step up SIP
A percentage step-up multiplies the instalment by the chosen increase. A fixed-amount step-up adds a rupee amount instead. The calculator offers increases every 12 or 6 months. The following comparison uses a 10% increase after every 12 instalments, beginning with ₹15,000 a month for 20 years at a 12% annual input.
| Result | Flat SIP | Annual 10% step up |
|---|---|---|
| Total contributed | ₹36.00 lakh | ₹1.03 crore |
| Projected final value | ₹1.50 crore | ₹2.98 crore |
The larger step-up result includes substantially more contributed capital. Compare both rows before drawing a conclusion from the final value.
Understanding Inflation Impact
Inflation adjustment expresses a future amount in today's purchasing power:
Present purchasing power = Future value ÷ (1 + inflation rate)years
Use the inflation rate as a decimal. At 6% annual inflation, the 15-year ₹50.46 lakh projection is worth about ₹21.05 lakh in today's money. The future account value remains ₹50.46 lakh; the second figure describes what it could buy.
Inflation adjustment does not increase the SIP or change the return. Contribution step-ups are a separate setting.
How to Use the SIP Calculator
Enter the monthly SIP and any initial lump sum.
Set the duration and annual return assumption.
Enable a percentage or fixed-amount step-up if needed, and choose its interval.
Add an inflation assumption to compare future rupees with today's purchasing power.
Review contributions and calculated growth separately, then compare the yearly breakdown.
Save alternative assumptions in the What-If Scenarios tab and use the Comparison tab to review them together. Up to four saved scenarios are supported.
Understanding SIP Results
Rupee cost averaging
Rupee cost averaging
A fixed contribution buys more mutual fund units when the net asset value is lower and fewer when it is higher. The calculator does not simulate changing unit prices, market falls or recoveries. Rupee-cost averaging does not guarantee a profit or prevent loss.
SIP projections and actual returns
SIP projections and actual returns
This page projects future values from an assumed rate. It does not measure the realised return of an existing SIP. Actual dated contributions, withdrawals and a final valuation require a date-based measure such as XIRR. The FFC IRR calculator uses annual rows and does not accept transaction dates.
Related calculations
Related calculations
Use the Compound Interest Calculator for a lump sum, the SWP Calculator for withdrawals and the Retirement Planner for a retirement projection. The CAGR Calculator describes growth between two endpoint values without intermediate external cash flows.
Frequently Asked Questions
Is a SIP return guaranteed?
Why do SIP calculators show different totals?
Does the calculator deduct mutual fund costs and tax?
Does a larger step up mean a higher investment return?
Does changing currency convert my money?
Assumptions and Disclaimer
The projection uses regular contributions, a constant rate, reinvested growth and the selected step-up schedule. It does not simulate volatility, interrupted payments or changing inflation. Test several rates rather than treating one scenario as a forecast.
This is education, not investment advice. Mutual fund investments are subject to market risks; read all scheme-related documents carefully. Past performance does not guarantee future results.
Sources and Review
- AMFI investor education on mutual funds and SIPs
- SEBI Investor SIP calculator
- SEBI Investor power of compounding calculator
Content reviewed on 26 October 2026.