Inflation Calculator
Calculate how inflation affects your money's purchasing power. Plan for future expenses accounting for rising prices.
Calculate Future Value
Quick Select Inflation Rate:
Results
6%
Inflation Rate
10 Years
Time Period
79%
Value Change
56%
Purchasing Power Left
How ₹1.00 L Changes Over Time
Housing (7% inflation)
₹1.97 L
in 10 years
Education (10% inflation)
₹2.59 L
in 10 years
General (6% inflation)
₹1.79 L
in 10 years
Year-wise Inflation Impact
| Year | Future Value Needed | Purchasing Power |
|---|---|---|
| Year 0 | ₹1.00 L | ₹1.00 L |
| Year 1 | ₹1.06 L | ₹94.34 K |
| Year 2 | ₹1.12 L | ₹89.00 K |
| Year 3 | ₹1.19 L | ₹83.96 K |
| Year 4 | ₹1.26 L | ₹79.21 K |
| Year 5 | ₹1.34 L | ₹74.73 K |
| Year 6 | ₹1.42 L | ₹70.50 K |
| Year 7 | ₹1.50 L | ₹66.51 K |
| Year 8 | ₹1.59 L | ₹62.74 K |
| Year 9 | ₹1.69 L | ₹59.19 K |
| Year 10 | ₹1.79 L | ₹55.84 K |
What is Inflation Calculator, and How Does it Help You
Inflation is the rate at which the general level of prices for goods and services rises, causing purchasing power to fall. If you don't account for inflation, your savings may lose value over time. An item that costs ₹10,000 today will cost significantly more in the future, making inflation planning a key part of long-term investing.
The Inflation Calculator helps you estimate the future cost of goods or the future value of your savings. It allows you to visualize how inflation impacts your purchasing power over time.
Purchasing Power Tracker
See how the value of a fixed sum of money decreases over a specified time horizon.
Future Cost Estimation
Calculate the inflated cost of milestones (like children's education or weddings) in the future.
Adjust Return Targets
Determine the real, inflation-adjusted rate of return needed from your investments.
How Does the Inflation Calculator Work?
The Inflation Calculator uses the standard future value formula to compound the price of goods by the average inflation rate.
Future Value = Current Cost * (1 + i)^n
If your current monthly expenses are ₹50,000 and the average annual inflation rate is 6% over the next 15 years, the calculator computes: Future Value = 50,000 * (1 + 0.06)^15 = 50,000 * 2.396 = ₹1,19,828. You will need ₹1,19,828 per month in 15 years to maintain your current lifestyle.
How to Use Inflation Calculator
Using the Inflation Calculator is extremely simple and takes just a few seconds. Follow these steps:
Enter Current Amount
Type in the present price of goods or your current monthly living expenses.
Set Inflation Rate
Input the expected annual inflation rate (usually between 5% and 7% for India).
Specify Time Horizon
Enter the number of years in the future to see the inflated cost.
Advantages of Using Inflation Calculator
✓ Realistic Retirement Goals
Calculate retirement savings targets in future terms rather than today's value.
✓ Avoid Under-Investing
Ensure your investment returns outpace inflation to build real wealth.
✓ Milestone Goal Security
Estimate the future costs of education or weddings to save the correct amount today.
✓ Historical Value Checks
Understand how purchasing power has changed over previous decades.