Inflation adjusted SIP calculator are wrong?

[helmi]

Considering,
Monthly SIP = 3,50,000
Period = 15 yrs
Step Up = 10%
CAGR = 12%

Without adjusting for inflation:
NW in 15 yrs = 30 Cr

While adjusting for inflation using calculator above:
Which probably use a real return = (1+CAGR)/(1+inflation) - 1

NW in 15 yrs: 15 Cr

So basically it halved approximately.

But I think that’s incorrect. Real value of my assets in today’s value would be

(NW w/o adjusting inflation)/(Cost increase factor)

Using this calculator, cost increase multiplier is 4.17 for 10% inflation in 15 yrs

So my actual NW would be = 30/4.17 = ~7.2 Cr

Am I wrong??

 

[mythriilesque]

@helmi Isn’t the simpler way to have your step up % adjusted for inflation? For example, if you factor in a 6% inflation, your net step up would be 4% which you use in your calculations. As per this calculation, NW will be 21.66 Cr

 

[helmi]

@mythriilesque Yup, I agree. But I usually use 10% inflation in my calculations

 

[mythriilesque]

@helmi Then effective step up is 0.