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Inflation Calculator

See how inflation erodes the purchasing power of your money

Last Updated: July 2026
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

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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.

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