How does this calculator work?

This calculator automatically increases your monthly installment by the rate of inflation every year. This ensures that the real value of your monthly savings remains constant over time.

Investing

Inflation-Adjusted SIP Calculator

Determine the returns of an investment that scales with inflation to maintain true purchasing power.

Calculator Inputs

Initial Monthly SIP (€)

Expected Annual Return (%)

Investment Horizon (Years)

Inflation Rate (Sets Annual Step-Up %)

Total Invested:€409,89K

Estimated Gains:€1,21M

€1,62M

€874,76K

Purchasing Power Lost

46.1%

Real Wealth Insight

Inflation-Adjusted

€1,62M

€874,76K(-46%)

Inflation Loss Intensity46.1%

Inflation at 2.5% erodes €746,99K in buying power over 25 years.

Key Strategic Takeaway

Starting with 1.000 €/month and stepping up by 2.5% each year (matching inflation), you invest €409,89K over 25 years. Nominal corpus: €1,62M. Real purchasing power: €874,76K (46.1% eroded by inflation).

Actionable Next Steps

Step-Up SIP Calculator

Inflation is eating 46% of your returns. Try increasing your investments annually to beat it.

Target Corpus Calculator

See exactly how much you need to invest monthly to reach your actual goal after inflation.

Wealth Growth with Inflation Hedging

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Return Scenario Comparisons

Conservative (-2%)

8.0% Return

€1,19M

€639,45K

Power Lost:46.1%

Expected (Base)

10.0% Return

€1,62M

€874,76K

Power Lost:46.1%

Optimistic (+2%)

12.0% Return

€2,26M

€1,22M

Power Lost:46.1%

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Methodology: Mathematical FormulasData Sources: Inflation & Tax CitationsDisclaimer: Legal Disclosures

Calculation Methodology & Formulas

This calculator compounds monthly investments that step up annually by the inflation rate:

P_year = P_initial × (1 + inflation)^{year - 1}

Real-World Compounding Projections

Hedging against 3% inflation

Starting with $1,000/month, your SIP increases to $1,030 in Year 2, and so on. Over 25 years at a 10% return, your total nominal corpus is $1,617,144, which buys exactly what $772,328 buys today.

Frequently Asked Questions (FAQ)

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