Clear SIP

Clear SIP: The Real Returns Calculator

Standard SIP calculators sell you an illusion. They project massive numbers by completely ignoring the silent wealth killers: inflation, hidden charges, and taxes.

Clear SIP strips away the fluff to give you the unvarnished truth. We keep it real.

1. Your Growth Plan

%
Yrs
%

12% is the 10-year global average for equity markets.

%

0.75% is the industry average for Direct Mutual Funds.

%

1% is the standard exit load if units are sold within 1 year.

Stamp duty calculation is auto-calculated for mutual funds (0.005%).

3. Inflation

What is Inflation?
%

Indian average inflation for the past 10 years has hovered around 6%.

4. Taxation

Effective Tax Rate12.5%
Health & Edu Cess4%
Final Purchasing Power after 10 Years

₹83,08,592

Calculated after deducting all hidden charges, inflation, and taxes—the true picture conventional tools hide.

Total Final Value

₹1,58,32,236

Total Invested

₹95,62,455

Wealth Friction Breakdown

Tenure: 10 Years

Total Capital Invested

₹95,62,455

Total Final Value

₹1,58,32,236
Taxes & Charges Breakdown

Expense Ratio Drag

-₹11,87,418

Exit Load & Stamp Duty

-₹1,58,800

Wealth Lost to Taxes (LTCG/Slab)

-₹7,94,490

Wealth Lost to Inflation

-₹65,70,831

Total Wealth Lost to Charges, Taxes, and Inflation

This crucial figure is ignored by most conventional financial tools.

-₹75,24,121

Final Real Value

₹83,08,592

Wealth Trajectory

The Illusion of Conventional Calculators

Most SIP calculators are marketing tools designed to make you feel wealthy. They compound your money at a fixed rate and show you a massive number at the end of 20 years. But that number is an illusion. It ignores the fact that a Rupee today is not the same as a Rupee 20 years from now. By ignoring friction—taxes, inflation, and hidden fees—they set you up for a massive disappointment when you actually try to use that wealth.

The Silent Thief (Inflation)

Inflation is the most dangerous wealth killer because it's invisible. At a standard 6% inflation rate, the purchasing power of your money cuts in half every 12 years. If your calculator says you'll have ₹1 Crore in 20 years, it's actually worth only about ₹31 Lakhs in today's terms. Clear SIP shows you the truth.

Hidden Charges & Compounding Drag

A 1% expense ratio sounds small, but it's deducted from your *entire corpus* every single year. Over a 20-year period, that 1% fee can eat away up to 25% of your potential wealth because that money never got a chance to compound. We factor in every DP charge, STT, and maintenance fee.

The Tax Reality

The government is your silent partner. With the new 12.5% LTCG tax on equity and property, and income tax slabs reaching 30% for Debt MFs, your "gross returns" are never yours to keep. Clear SIP calculates the exact tax liability, including the 4% Health & Education Cess, so you know exactly what will land in your bank account.

LTCG: 12.5%
STCG: 20%
Cess: 4%

Deep Dive: Understanding Inflation

Inflation is the rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling. Central banks attempt to limit inflation, and avoid deflation, in order to keep the economy running smoothly.

The Purchasing Power Trap

If a basket of goods costs ₹100 today, at 6% inflation, the same basket will cost ₹320 in 20 years. This means your money is losing value every single day.

This is why calculating "Real Returns" is far more important than "Nominal Returns." Nominal returns tell you how much money you have; Real returns tell you how much that money can actually buy.

Today₹100
In 10 Years₹179
In 20 Years₹320

Calculated at 6% Annual Inflation

Understanding Hidden Charges

To calculate real returns, you must look beyond the NAV or stock price. Here is a breakdown of the frictions that eat into your wealth and where to find them.

Expense Ratio

The annual fee charged by mutual funds to manage your money. It is deducted daily from the NAV.

Where to find it:

Find it in the 'Scheme Information Document' or the 'Factsheet' on the AMC website or platforms like Groww/Zerodha Coin.

Exit Load

A penalty charged if you withdraw your mutual fund units before a specific period (usually 1 year).

Where to find it:

Listed under 'Scheme Details' in your broker app or the fund factsheet.

STT (Securities Transaction Tax)

A direct tax levied by the Government of India on the purchase and sale of securities listed on stock exchanges. For delivery trades, it is 0.1% on both buy and sell sides.

Where to find it:

Visible in your 'Contract Note' sent by your broker after every trade.

DP Charges

Flat fee charged by the Depository Participant (NSDL/CDSL) when you sell stocks from your demat account. Zerodha charges ₹13.5 + 18% GST (approx ₹15.93) per scrip per day.

Where to find it:

Check the 'Tariff Sheet' of your broker. It is only charged on the sell side.

Transaction Charges

Fees charged by exchanges (NSE/BSE) for processing the trade. For NSE delivery, it is currently 0.00345%.

Where to find it:

Found in the tax breakdown of your broker's contract note.

SEBI Turnover Fees

A very small fee charged by SEBI for every transaction to regulate the markets (0.0001%).

Where to find it:

Listed as 'SEBI Charges' in your contract note.

Stamp Duty

A one-time tax for legal documentation. For stock delivery, it is 0.015% on the buy side only. For MFs, it is 0.005% on purchase.

Where to find it:

Deducted at the time of allotment of units/shares.