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??
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??