General Finance
Link copied!
Inflation Calculator
See what today's money will actually be worth years from now. Adjust any input below and your results update instantly.
Understanding inflation
The concept, the motivation, and what to watch out for.
Why does the same rupee buy less over time?
Inflation is the rate at which prices rise, which means the same amount of money buys a little less every year. A fixed sum sitting idle doesn't lose any rupees — but it steadily loses purchasing power, since it takes more rupees to buy the same things.
This calculator shows both sides of that erosion: what you'd need in the future to match today's buying power, and what today's fixed amount will actually be worth once you get there.
Prices compound, just like investments
Inflation isn't a one-time markup — it compounds every year, which is why the gap between today's cost and the future cost widens faster over longer periods.
Cash that isn't growing is quietly shrinking
Money kept in a low- or zero-return account still loses real value every year that inflation outpaces its return, even though the number on the statement never falls.
How this calculator helps
Enter any amount, an inflation rate, and a time horizon — see exactly how much of its value survives, and what it would take to keep up.
Calculate the impact of inflation
Fill in the starred fields on the left — your results update instantly on the right.
Your details
≈ ₹1.00 L
e.g. ₹1,00,000 today
e.g. 6% average inflation
e.g. 10 years from now
How these compare
vs. typical India long-term ranges
Inflation rate: 6%
India's recent average: 5–7%
These are example numbers. Edit any input on the left to see your own.
Your ₹1.00 L will be worth
₹55,839
in 10 years, at 6% inflation
Equivalent future cost
₹1.79 L
Purchasing power lost
44%
What will it cost you then?
Future costToday’s amount
If you want to buy what ₹1.00 L buys today, here’s what you’d need to spend at each point in the future.
Year-by-year
YearFuture costIncrease vs. todayStatus
0₹1.00 L₹0
Today
0% costlier than today
2₹1.12 L₹12,360
+12%
12% costlier than today
4₹1.26 L₹26,248
+26%
26% costlier than today
6₹1.42 L₹41,852
+42%
42% costlier than today
8₹1.59 L₹59,385
+59%
59% costlier than today
10₹1.79 L₹79,085
+79%
79% costlier than today
What will your money be worth then?
Purchasing powerToday’s amount
If you hold onto ₹1.00 L without it earning anything, here’s what it will really be worth, in today’s terms, at each point in the future.
Year-by-year
YearPurchasing powerValue lost vs. todayStatus
0₹1.00 L₹0
Today
100% of original value remains
2₹89,000₹11,000
-11%
89% of original value remains
4₹79,209₹20,791
-21%
79% of original value remains
6₹70,496₹29,504
-30%
70% of original value remains
8₹62,741₹37,259
-37%
63% of original value remains
10₹55,839₹44,161
-44%
56% of original value remains
Compare scenarios
See how a higher rate or a longer horizon would change your purchasing power.
Your plan
6% · 10y
₹55,839
Purchasing power
Baseline
Rate +2%
8% · 10y
₹46,319
Purchasing power
-₹9,520
Years +10
6% · 20y
₹31,180
Purchasing power
-₹24,659
Worked example, using your numbers
A step-by-step walkthrough of how your amount's value changes over time.
Step 1 · Future cost
₹1.00 L growing at 6%/yr for 10 years becomes
₹1.79 L
Step 2 · Purchasing power
That same fixed amount, in today’s terms, will really only be worth
₹55,839
Step 3 · Value lost
Which means the share of its original value that’s been eroded is
44%
✓
Your ₹1.00 L today will be worth just ₹55,839 in 10 years.
Personalised insights
What your numbers reveal, and what changing them would do.
Your ₹1.00 L will be worth only ₹55,839 in 10 years
At 6% average inflation, that's a loss of about 44% of its original purchasing power.
You'd need ₹1.79 L in 10 years to match today's buying power
That's how much ₹1.00 L worth of goods or services today is projected to cost after 10 years of inflation.
A 2% higher inflation rate would reduce this to ₹46,319
At 8% instead of 6%, your money's future purchasing power drops noticeably faster.
Waiting 10 more years would reduce it further to ₹31,180
Over 20 years instead of 10, the same fixed amount loses considerably more of its real value.
How this is calculated
Every step of the math behind your result, shown in the open.
Future cost of today's amount
A = amount today, i = inflation rate, n = years, F = equivalent future cost
Your amount today (A) is grown forward by the inflation rate (i) for n years — this is what you'd need to have in the future to buy exactly what A buys today.
Example: ₹1.00 L growing at 6%/yr for 10 years → ₹1.79 L equivalent future cost
Future purchasing power
A = amount today, i = inflation rate, n = years, P = purchasing power in today's terms
The same amount (A), left unchanged in rupee terms, is discounted back by the inflation rate — showing what it will actually be worth, in today's terms, after n years.
Example: ₹1.00 L discounted at 6%/yr for 10 years → ₹55,839 in today's terms
Purchasing power lost
i = inflation rate, n = years, Loss % = share of value eroded
This expresses the same erosion as a percentage — how much of your money's real value has been worn away by rising prices over n years.
Example: 1 − 1/(1+0.06)^10 → 44% of value lost
Assumptions
- Inflation compounds annually at a single, constant rate.
- This isolates inflation's effect alone — no investment return on the amount is assumed.
- Figures are indicative — not financial advice.
Did you know?
A few facts behind inflation and purchasing power.
72
The Rule of 72 works for prices too
Dividing 72 by your inflation rate gives a quick estimate of how many years it takes for prices to double — at 6% inflation, that's about 12 years.
Silent
Inflation erodes value without changing the number
A bank balance that never falls can still lose a large share of its real value over a decade or two, simply by standing still while prices rise around it.
Uneven
Not everything inflates at the same rate
Categories like education and healthcare have often risen faster than headline inflation in India, meaning a single average rate can understate the pressure on some budgets.
Real
A 'real return' already accounts for inflation
When someone quotes a real (inflation-adjusted) return, they've already subtracted out this erosion — it's the return in terms of actual purchasing power gained.
Frequently asked questions
Straight answers to the questions we hear most about inflation.
What's the difference between 'future cost' and 'purchasing power' here?
They're the same formula in opposite directions. Future cost asks: what would I need in the future to buy what this amount buys today? Purchasing power asks: what will this exact amount actually be worth, in today's terms, once I get there?
Why does a small inflation rate matter so much over time?
Inflation compounds every year, so even a modest rate steadily erodes value — at 6% inflation, prices roughly double every 12 years, meaning money sitting idle loses about half its purchasing power in that time.
How do I protect my money from inflation?
Broadly, by earning a return that outpaces inflation — cash and low-interest savings often lose the race, while equities, real estate, and inflation-linked instruments have historically had a better chance of keeping up or getting ahead.
What inflation rate should I use?
India's headline retail inflation has typically averaged in the 5–7% range in recent years, but the right number depends on your own goal — everyday essentials, education, and healthcare have often run hotter than the headline rate.
Does this calculator account for taxes or investment returns?
No — this tool isolates inflation's effect alone, assuming the amount doesn't earn any return. Pair it with a SIP, FD, or Compound Interest calculator to see how a specific investment might keep pace.
Is this financial advice?
No. This tool provides indicative estimates based on your assumptions. Consult a certified financial advisor for advice tailored to your situation.
Related calculators
Other tools worth checking as you plan around inflation.
CInvestments
Compound Interest Calculator
See how compounding grows a deposit at different rates and frequencies.
Try it
RRetirement
Retirement Corpus Calculator
Find out how large a corpus you need to retire comfortably.
Try it
PReal Estate
Property Appreciation Calculator
Project a property's future value based on historical growth rates.
Try it
CInvestments
CAGR Calculator
Work out the annual growth rate of an investment between two dates.
Try it
Learn more
Articles to go deeper on the ideas behind this calculator.
Fundamentals
How inflation is measured in India
CPI, WPI, and what the headline inflation number actually tracks.
6 min read
Fundamentals
Real vs nominal returns, explained
Why the return that matters is the one left after inflation.
5 min read
Strategy
Investments that have historically outpaced inflation
Where equities, real estate, and gold have stood against rising prices in India.
6 min read