Why this calculator is important
This calculator matters because mutual funds decisions usually affect cash flow, insurance cover, tax planning or long-term wealth. A structured result helps you see the gap, the yearly progress and the action required before you commit money.
What you gain from the result
You get a usable estimate, a year-wise progress chart, input summary, downloadable PDF and a clear next step for review. The output is built for practical planning, not only quick entertainment.
How to read the year-wise chart
The bar chart separates your contribution, growth, gap or protection value by year. Use it to see whether the plan depends too much on future returns, too little on current savings, or an unrealistic time frame.
Frequently Asked Questions
What is inflation and how does it affect savings?
Inflation is the general rise in prices over time. It reduces the purchasing power of your money — ₹1,00,000 today may only buy what ₹63,000 buys today after 10 years at 5% inflation. This is why investing is important: your savings must grow faster than inflation to maintain wealth.
What is the average inflation rate in India?
India's CPI (Consumer Price Index) inflation has averaged 5–7% over the last decade. Food inflation tends to be higher (7–10%). For financial planning in India, using 6% general inflation and 8–10% education/healthcare inflation gives a realistic estimate.
How does inflation affect retirement planning?
Inflation is the biggest risk in retirement. If you retire with ₹50,000/month expenses today, those same expenses will cost ₹1.6 lakhs after 20 years at 6% inflation. This is why your retirement corpus must be large enough to fund inflation-adjusted expenses throughout retirement.
How can I beat inflation in India?
Equity mutual funds have historically delivered returns of 10–14% CAGR — well above India's average inflation. Other options include NPS, ELSS, real estate and gold. A diversified portfolio with a significant equity allocation is the most effective way to beat inflation over the long term.
Should I use the inflation calculator before setting a financial goal?
Yes, always. If you want ₹10 lakhs for your child's education in 10 years, the real cost will be about ₹17–18 lakhs at 6% inflation. Use this calculator to find the inflation-adjusted target first, then use the SIP calculator to find the monthly investment needed.
Want help reviewing your SIP result?
Our team at Hatlet Ventures can review this result against your real income, goals, insurance gaps and tax situation — for free.
Sri Balaji is the founder of Hatlet Ventures, a NISM-certified, AMFI-registered mutual fund distributor and IRDAI-licensed insurance advisor based in Tiruppur, Tamil Nadu. He helps families with SIPs, mutual funds, insurance planning, tax-saving investments and long-term financial planning.