Inflation Calculator
About the Inflation Calculator
Inflation is the steady rise in prices over time, which quietly erodes the purchasing power of money. Something that costs ₹100 today will cost more in future — this calculator shows by how much.
Enter today's cost, an expected inflation rate and the number of years, and it returns the future cost and the extra you will need to afford the same thing.
Frequently asked questions
How is the future cost calculated?
Future cost = Current cost × (1 + inflation ÷ 100) ^ years. At 6% inflation, an item costing ₹1,00,000 today would cost about ₹1,79,000 in 10 years.
Why does inflation matter for my savings?
Because if your money grows slower than inflation, it loses real value even as the rupee figure rises. A return that just matches inflation leaves your purchasing power flat; growth in real terms is whatever the return exceeds inflation by.
What inflation rate should I assume in India?
Retail inflation in India has often run in the 4–7% range, though it varies year to year. A figure around 6% is commonly used for long-term planning. Running a low rate and a high one shows the range that a single assumption hides.
What is the difference between nominal and real returns?
A nominal return is the headline rate; the real return is what is left after subtracting inflation. An 8% return with 6% inflation is only about 2% in real terms — that real figure is what grows your wealth.
How does inflation affect retirement planning?
Hugely. Decades of inflation can multiply your living costs several times over, so a retirement corpus must be sized for future prices, not today's. Our Retirement calculator builds inflation into the target.
Disclaimer: This calculator is for information and education only. It is not investment advice and not a recommendation. Where a rate or a price is an input, it is an assumption, and actual rates vary. It does not take your personal circumstances into account. Every figure is computed solely by applying the formula and assumptions stated on this page to the inputs you entered.