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SIP calculator with inflation and tax

Put in a monthly amount, a return you expect, and a number of years. See what it grows to before tax, after LTCG tax, and in today’s rupees after inflation. The three numbers are very different.

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%
yrs

How long you keep investing every month.

%

Used to convert the maturity value into today's purchasing power.

Maturity value (before tax)
₹0
Total invested₹0
Wealth gained₹0
Maturity value₹0
Estimated LTCG tax (equity)₹0
Post-tax maturity value₹0
Same value, today's rupees₹0

Invested vs. value, year by year

Nominal, before tax
Portfolio value Amount invested
Tax assumption: equity mutual funds held over a year qualify for long-term capital gains, taxed at 12.5%, with the first ₹1.25L of gains in a financial year exempt. This calculator applies that exemption once, to the whole gain, as a simplification; a real SIP redeemed as one lump sum has each instalment's gain taxed on its own holding period, and some of your most recent instalments may still count as short-term (taxed at 20%) if you redeem within a year of investing them. Debt funds and non-equity instruments are taxed differently. This is not tax advice. Check current rules or ask a CA before relying on the number.
Inflation assumption: "today's rupees" divides the post-tax maturity value by 6% compounded annually over the full term. It tells you what that future amount would be worth if prices kept rising at this rate. It does not change the maturity value itself.

How this SIP calculator handles tax and inflation

  1. Maturity value. Each monthly instalment compounds at your expected return: FV = P × [((1 + r)n − 1) ÷ r] × (1 + r), with r the annual return ÷ 12 and n the number of months.
  2. Tax. The gain is the maturity value minus what you put in. Equity fund gains held over a year are long-term: the first ₹1.25 lakh of gains in a financial year is exempt and the rest is taxed at 12.5%.
  3. Post-tax value. Maturity value minus that tax: what actually reaches your bank account.
  4. Inflation. The post-tax value divided by (1 + inflation)years: what that money will buy, in today’s prices.

What ₹10,000 a month becomes, after tax and inflation

At a 12% return and 6% inflation, using the calculator’s own formula:

YearsMaturityAfter taxToday’s rupees
10 (₹12 L in)₹23.23 L₹21.99 L₹12.28 L
15 (₹18 L in)₹50.46 L₹46.56 L₹19.43 L
20 (₹24 L in)₹99.91 L₹90.58 L₹28.24 L
25 (₹30 L in)₹1.90 Cr₹1.70 Cr₹39.60 L

After LTCG tax the SIP earns about 11.1% to 11.4% a year. After 6% inflation that is about 4.8% to 5.1% a year in real terms: (1 + post-tax return) ÷ 1.06 − 1. That real return, not the 12%, is what grows your buying power.

How much SIP for ₹1 crore in today’s money?

At 12% a year and 6% inflation, after LTCG tax: about ₹51,600 a month for 15 years, ₹35,450 for 20 years or ₹25,300 for 25 years. In 20 years, ₹1 crore of today’s buying power is about ₹3.21 crore in rupees of that year. Change the inputs above to test your own target, or run your SIP on real fund and index history in the Strategy Lab.

Questions people ask

Worked answers, using the same formulas as the calculator above.

How do I calculate SIP returns after inflation?

Work out the post-tax maturity value, then divide it by (1 + inflation) raised to the number of years. At 12% a year and 6% inflation, ₹10,000 a month for 20 years reaches ₹99.91 lakh, ₹90.58 lakh after LTCG tax, and ₹28.24 lakh in today’s rupees. The calculator above does all three steps.

What is the real return on a SIP after tax and inflation?

Real return = (1 + post-tax return) ÷ (1 + inflation) − 1. A SIP earning 12% before tax earns about 11.3% a year after LTCG tax over 20 years; with 6% inflation that is about 5% a year in real terms.

How much SIP do I need for ₹1 crore in today’s money?

At 12% a year, 6% inflation and 12.5% LTCG tax: about ₹35,450 a month for 20 years, ₹51,600 for 15 years or ₹25,300 for 25 years. In 20 years, ₹1 crore of today’s buying power is about ₹3.21 crore in rupees of that year.

Does this SIP calculator include LTCG tax?

Yes. It taxes the gain above the ₹1.25 lakh yearly exemption at 12.5%, the long-term rate for equity funds. As a simplification it treats the whole gain as long-term and uses the exemption once; units held under a year would be taxed at 20%.

How is SIP maturity value calculated?

With the future-value formula for monthly instalments paid at the start of each month: FV = P × [((1 + r)n − 1) ÷ r] × (1 + r), where P is the monthly amount, r the monthly return (annual return ÷ 12) and n the number of months. The calculator above runs exactly this, then takes off tax and inflation.

What will a ₹25,000 monthly SIP be worth in 15 years?

At 12% a year it grows to about ₹1.26 crore, of which ₹45 lakh is your own money. Long-term capital-gains tax takes roughly ₹10 lakh, leaving ₹1.16 crore, and at 6% inflation that is worth about ₹48 lakh in today’s rupees. Three very different numbers for the same SIP.

How much does a ₹5,000 SIP become in 10 years?

At 12% a year, about ₹11.6 lakh on ₹6 lakh invested, or ₹11.1 lakh after LTCG tax. Stretch the same SIP to 20 years and it reaches about ₹50 lakh: the second decade adds far more than the first, which is why starting early matters more than starting big.

How are SIP returns taxed in India?

Each instalment has its own holding period. Equity fund units held over 12 months are long-term: gains above ₹1.25 lakh in a financial year are taxed at 12.5%. Units held 12 months or less are short-term and taxed at 20%. The calculator applies the long-term rate to the whole gain as a simplification.

What return should I assume for an equity SIP?

Use a figure you would be comfortable being wrong about, and try a lower one too. 12% is the common planning default for diversified equity. Real outcomes vary a lot by index and period: a plain SIP in Nifty Midcap 150 Momentum 50 returned 20.97% a year from 2005 to 2026, which is unusually high and not a safe planning number.

Should I stop my SIP when the market falls?

History says no. A SIP started in January 2008, a month before the index fell 69%, still compounded at 22.07% a year, because the falling months bought cheaply. We tested 12,060 timing rules against a plain SIP; read what we found.