Planning
Inflation Calculator
See what today's money will be worth later. Move the sliders or type exact numbers — results update instantly.
Formula checked by Naman, Fistotex founderLast updated Free · No sign-up · Runs in your browser
Your inputs
Cost in the future
₹1,79,085
≈ ₹1.79 Lakh
- What that amount will be worth (in today's money)
- ₹55,839
- Inflation factor
- 1.79
Figures are estimates based on the inputs and assumptions shown. Actual outcomes will differ. This is not financial advice.
Guide
Inflation Calculator: what it does and when to use it
An inflation calculator shows how rising prices erode the purchasing power of money. It tells you what a cost today will be in the future, such as school fees or monthly expenses, at an assumed inflation rate.
Use the result to set goals in future rupees, and make sure your investments are expected to earn more than inflation after tax.
How to use it: set each input with the slider or type an exact figure. Results, the chart and the shareable link update instantly.
- Amount today
- ₹1,00,000
- Expected inflation
- 6%
- Number of years
- 10 years
- What that amount will be worth (in today's money)
- ₹55,839
- Inflation factor
- 1.79
- Cost in the future
- ₹1,79,085
Method
How this calculation works
The exact formula and assumptions behind the numbers above.
Formula
Future cost = Amount × (1 + i)ⁿ Real value = Amount ÷ (1 + i)ⁿ
i = inflation rate ÷ 100, n = number of years.
Assumptions
- Inflation compounds, so the effect accelerates over long periods.
- Real return = nominal return − inflation. That is the number that grows your actual purchasing power.
Questions
Frequently asked questions
What is a realistic inflation assumption?
In India, headline CPI has typically run around 5–6% over the long term, though food and education inflation can be higher.
Why does this matter for investing?
A 'safe' 4% fixed deposit against 6% inflation loses purchasing power every year, even though the balance grows.
What is the current inflation rate in India?
India's CPI inflation is published monthly by the Ministry of Statistics (MoSPI), and the RBI targets 4% within a 2–6% band. Use a long-term average rather than a single month's figure for planning.
How does inflation affect my savings?
If your savings earn less than inflation after tax, their real value falls every year even though the balance grows.
Disclaimer
This calculator is an educational tool. It provides estimates based on the inputs and assumptions shown, and does not constitute personalised financial, investment or tax advice. Actual returns, interest, taxes and fees will vary. Please consult a qualified professional before making financial decisions.