`n
All Calculators Salary & HR Tax Loans & EMI Investments All PDF Tools Browser-Based PDF Tools Advanced PDF Tools All HR Tools HR Documents Career Tools AI Tools All Documents HR Documents Business Documents Blog About Contact
section class="calc-section">
Amount whose future value to calculate
Expected annual inflation (India avg: 5-7%)
Number of years into the future
Today's Value
—
Current purchasing power
Future Cost
—
What this will cost
Purchasing Power
—
Remaining value %

Purchasing Power Over Time

Yearly Breakdown

Advertisement

What Is an Inflation Calculator?

An Inflation Calculator shows how the purchasing power of your money changes over time due to rising prices. India's average CPI inflation has been around 5-7% annually. Goods costing ₹1 lakh today will cost significantly more in 10-30 years.

Understanding inflation is critical for financial planning. If investments don't beat inflation, you lose money in real terms. If inflation is 6% and FD earns 7%, your real return is only ~1%.

Inflation Formula

Future Cost = P × (1 + r)n
P = Current amountr = Annual inflation raten = Number of years

Frequently Asked Questions

What is the current inflation rate in India?
India's CPI inflation has averaged 5-6% recently. The RBI targets 4% (+/-2%). For financial planning, using 6% as a conservative estimate is recommended. Lifestyle inflation (education, healthcare) can be 8-10%+.
How does inflation affect savings?
If inflation is 6% and savings earns 3%, you lose 3% purchasing power yearly. ₹10L in savings will buy goods worth only ₹5.58L in real terms after 10 years at 6% inflation.
What investments beat inflation?
Equity mutual funds (10-15%), real estate (8-12%), and gold (8-10%) have historically beaten India's inflation. FDs (6-7.5%) barely match it. Savings accounts (3-4%) lose value in real terms.
What is lifestyle inflation?
Your personal expense increase rate, often higher than CPI. Education (10-12%), healthcare (10-14%), and premium services inflate faster. Use category-specific rates when planning goals like children's education or retirement.

Related Calculators

FIRE

Financial Independence Calculator

Plan your path to financial freedom.

SIP

SIP Calculator

Calculate investment returns.

CI

Compound Interest Calculator

Calculate compound interest growth.

Wealth

Net Worth Calculator

Calculate your total net worth.

Found This Useful?

Help others understand the real cost of inflation.

Try Another Calculator