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SIP Calculator
Calculate your Systematic Investment Plan (SIP) returns and investment growth over time
Use Calculator →Inflation Calculator
Calculate how inflation affects the purchasing power of money over time. See the future value of your savings and understand the impact of inflation on your investments.
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Frequently Asked Questions
What is inflation?
Inflation is the rate at which the general price level of goods and services increases over time, reducing purchasing power of money. If inflation is 6%, items costing ₹100 today will cost ₹106 next year.
Why is understanding inflation important?
Inflation erodes the real value of your savings and investments. Understanding inflation helps you invest in instruments that outpace inflation, ensure retirement corpus is inflation-adjusted, and plan financial goals realistically.
What is a realistic inflation rate to assume?
India's average inflation hovers around 5-7% annually. For retirement planning, use 6-7%. For short-term goals (1-3 years), use current inflation. For conservative planning, assume higher inflation.
How does inflation affect investment returns?
Real return = Nominal return - Inflation rate. If your investment returns 12% but inflation is 7%, real return is only 5%. This is why you need investments that outpace inflation.
Which investments beat inflation?
Equity and equity mutual funds (historically 12-18% returns) outpace inflation. Debt funds (5-8%), FDs, and RDs may not always exceed inflation. Choose asset allocation based on risk tolerance and goals.
How should I adjust my retirement corpus for inflation?
If you need ₹50 lakh today for retirement in 30 years at 6% inflation, you'll need approximately ₹2.87 crore. Use inflation-adjusted calculations to ensure retirement planning is realistic and adequate.