How inflation toggle changes a long SIP projection
Nominal corpus vs today’s rupees
A twenty-year SIP can show a large future value at a constant return. That number is in future rupees. The inflation toggle on the SIP calculator discounts displayed results toward today’s purchasing power using the inflation rate you set. The underlying contribution maths does not suddenly become “safer”; you are only reading the output on a different scale.
When to switch it on
Use it for long goals—retirement, a toddler’s college—where sticky fees and living costs matter. Compare the same SIP with inflation off (headline corpus) and on (rough real corpus). If the real figure misses the goal, raise the instalment, extend tenure, or add step-up—then re-check with the toggle still on.
What not to invent
Inflation is not a forecast of markets, and a high equity return assumption plus low inflation can still flatter the plan. Pick boring inflation (often mid-single digits for planning talk) and a return you would defend in a bad decade. The toggle is a sanity check, not a precision instrument.
Results from FinanceChacha are estimates for planning, not financial or tax advice. Read the disclaimer.
Try the calculators
Open a calculator this guide refers to and run your own numbers.