SIP Calculator With Inflation – Find Out Inflation Adjusted SIP Returns

What Is SIP Calculator With Inflation?

SIP Calculator With Inflation will help you if you are planning to invest in mutual funds through a Systematic Investment Plan (SIP) or have currently invested. As a investor you should have a clear view on returns your SIP will generate.

In order to find that SIP Calculator With Inflation is the tool which makes a clear picture as it is a two in one SIP calculator which means now you can calculate monthly SIP return with keeping inflation in focus during your investment tenure.

SIP calculator helps you in calculating the future value of your return through money invested by SIP routes. SIP calculators is a very useful tools for investors, as it tells you the expected return without manual calculation, which is by the way very difficult.


How SIP Calculator With Inflation Works?

You just need to enter the monthly amount invested, enter expected return, enter investment period (in months) and average rate of inflation during your investment period, it will give you the future value as well as tells you about the wealth gained on investment made.

SIP calculator with inflation works on the formula use to calculate future value and compound interest. It is very easy to use the SIP calculator, let us understand by taking an example:

Suppose you want to start an monthly SIP of Rs.1000 in any mutual fund scheme for a period of 15 Years and you expect the return from that scheme to be around 15%(annually). Now how would you know how much you will get after 15 years of consistent SIP deposits, keeping the inflation in calculation during the investment tenure?

To solve this you can use moneycontain SIP calculator with inflation and get the result easily, So enter the values in below fields to get the results:


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Many investors who invest money through SIP’S whether lumpsum or monthly, does not count the rate of inflation.

Most first time investor miss this point, they only think, ok this will be the amount I would be getting at the end of my mutual fund scheme.

However, with time the value of money changes, what I means to say the value of Rs.100 after 25 Years would not be the same.

Due to inflation the prices or goods of any economy or country increase over a period of time. Hence you should account inflation while calculating your SIP returns.

To account inflation in your future value investments either drop the expected rate of return on investment, for example, if you are expecting 15% return on your investment you need to subtract the inflation rate for same period.

So, let say the average inflation for last 5 years is 3.5% so instead of taking 15% expected return, you count your return on 12.5%. You can get the inflation rate from here for India.

To find the real interest rate, we take the nominal interest rate and subtract the inflation rate.

Real interest ratenominal interest rate − inflation rate.

However the above method to calculate the inflation is the basic estimation, as inflation and returns compound the correct way or formula to calculate inflation adjusted return is given below:

Inflation-adjusted return = (1 + Return) / (1 + Inflation) – 1 

Applying the formula by using above no.

(1+15%)/(1+3.5%)-1= 11.11%, this is correct return you should expect on your investment post inflation.

Check out the below image to understand how inflation make a great impact even on your investments across different financial instruments such as Stock market (Equity), Mutual funds, FD, RD, Commodity & even real estate.


How To Calculate Inflation Adjusted Return or Real Return?

One need to understand “time value of money” as money loses its value over time, investing becomes important. Investing make sure a sustainable economic growth of a country and overall.

Therefore as an normal person or an investor you should know the (TMV) “time value of money” the value of money does not remain the same across time.

Meaning, the value of Rs.10000 today is not really Rs.10000 3 years from now. Oppositely, the value of Rs.10000 3 years from now is not really Rs.10000 as of today.

Whenever there is motion of time, there is an element of opportunity. Money has to be accounted or adjusted for that opportunity as in case inflation is that element.

Therefore it is very much important for you to make investments in mutual funds schemes

Checkout the impact of inflation on your returns as well as your life using moneycontain inflation rate calculator and calculate your future expenses easily.

At the same time there is another method or concept called present value or discounting, this helps you in knowing the (PV) present value of your future investments.

Calculate the present value of your future investment using moneycontain present value calculator.

Learn more about reverse inflation and inflation here.


How SIP Works?

In simple terms  Systematic Investment Plan popularly known as SIP is a method to invest fixed amount either monthly or lumpsum (onetime) in any mutual fund scheme. By doing systematic investment one can expect the maximum return on invested capital.

An SIP can be as low as ₹500 and can be invested at predefined intervals such as weekly, monthly, quarterly, semi-annually, annually.

The most common SIP’s are monthly SIP and lump sum SIP.  This facility is offered by mutual fund companies to investors, in order to invest their money systematically in any given fund.

Many people think SIP and mutual fund are two different things, however SIP is just a method of investing a fixed money at predefined intervals in a mutual fund scheme. So, SIP’s are nothing but a way to invest your money in mutual funds.

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Monthly SIP Vs Lumpsum SIP Which Is Better?

Monthly SIP is better because of the “Rupee Cost Averaging factor”. Rupee Cost Averaging allows an investor to take advantage of the stock market volatility.

Through investing in a SIP, as an investor you will get more units when the Net Asset Value (NAV) is less and less units when the NAV is high. Which brings down the average cost of the all units over the long term investment.

Having said that Lumpsum SIP has its own advantage if you are buying it at the right time in right fund and when the Net Asset Value (NAV) is less which means you will have more units at a particular price and in long duration the NAV will be higher creating a bigger profit.

Other things with lump sum SIP is, there is no headache for every month keeping certain money in your account to maintain the SIP.

Top up SIP is a facility which allows an investor to increase the amount of SIP instalments by a fixed amount at pre-determined intervals.

Top up SIP is a facility in which an investor can increase the amount of SIP instalments by a fixed amount at pre-determined intervals whereas SIP is a facility in which a fixed amount is invested at pre-determined intervals.



What is the one thing that you want when you get old? Time, so that you can correct and reverse the mistakes you did in past.

Time is equal for all of us on this planet at least? The more you invest your present time in right direction and decision, better will be your future.

Do start investing today, if you are not because the people who wait for right time, it does not come simply.

There are many types of investment that can be made in different financial instruments such as Stocks, SGB, ETF etc. However, investing is not everyone’s cup of tea, understanding the fundamentals (reading balance sheets, cashflow, profit-loss statement, annual reports etc. as well as doing technical analysis to choose stocks and create a portfolio takes time, learning and energy.

Instead, you can choose the list of different mutual funds schemes offered by the various Asset Management Companies(AMC) such as SBI, HDFC, UTI, AXIS, ICICI etc. and invest in them in a systematic way. This way is much better as you would be better disciplined with less risk.

Open Best Trading/Demat account within minutes online hassle-free paperless and start investing and trading in Stock market and mutual funds. 

Are you looking to invest in fixed deposits than do check, How Much You Can Get Monthly From Fixed Deposits. Also, see highest interest rate offering bank for fixed deposits(FD) in India.

Check out moneycontain CAGR Calculator to know your returns from investments made in mutual funds, index funds, FD, stocks, lumpsum etc.

If, you have liked the content please do share it with your friends or on social media, as sharing do bring the good karma. If you have any questions or feedback you can leave them in comment box below.

Note: Please do not take this as any recommendation, to trade or invest. This is just for reference, to make you understand more about the SIP calculator with inflation and its importance, under no circumstances intended to be used or considered as financial or investment advice, a recommendation or an offer to sell, or a solicitation of any offer to buy any securities or other form of financial asset.

Please do your own research and make investment. Moneycontain will not be responsible for any of your losses at all. The point made is for educational purpose only. All investments are subject to risks, which should be considered prior to making any investments.

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