Inflation Calculator

See how inflation erodes purchasing power over time
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%
yrs
Future Value of Today's Amount
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Today's Value
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Purchasing Power Lost
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Real Value After Inflation
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What is the inflation calculator?

An inflation calculator shows how the purchasing power of money changes over time. It tells you how much a sum of money today will be worth in the future — or what past prices equal in today's money — after accounting for a given inflation rate. Inflation silently erodes savings that are not growing fast enough.

Formula used

Future value (amount needed in future to match today's purchasing power): FV = PV × (1 + r)^t Real value (what today's money will actually buy in the future): Real = PV ÷ (1 + r)^t Purchasing power lost: Loss % = [1 − 1÷(1+r)^t] × 100 Where: PV = present value, r = inflation rate ÷ 100, t = years

How to use this calculator

  1. Enter the amount today
  2. Enter expected annual inflation rate (India CPI average: 5–6%)
  3. Enter number of years
  4. Click Calculate — see future equivalent value and purchasing power loss

Example

Example 1 — What ₹1 lakh today becomes:
Amount: ₹1,00,000 | Inflation: 6% | Time: 10 years
Future equivalent = 1,00,000 × (1.06)^10 = ₹1,79,085
Today's ₹1 lakh buys what ₹1.79 lakh will buy in 10 years.

Example 2 — Purchasing power erosion over 20 years:
Amount: ₹10,00,000 | Inflation: 6% | Time: 20 years
Real value = 10,00,000 ÷ (1.06)^20 = ₹3,11,805
Your ₹10 lakh feels like only ₹3.1 lakh in 20 years — a 69% loss in purchasing power.

Inflation rates to use for India:

CategorySuggested inflation rate
General expenses6%
Education8–10%
Healthcare10–12%
Food6–8%

Frequently asked questions

Use 6% for general expenses, 8% for education, and 10% for healthcare. These sectors historically outpace headline CPI inflation in India.
If your FD gives 7% and inflation is 6%, your real return is only about 1%. After tax (30% bracket), post-tax return is 4.9% — below inflation, meaning you are actually losing purchasing power.
Historically: equity mutual funds (12–15% CAGR), real estate (8–10%), and gold (8–10%). FDs and savings accounts barely keep pace with inflation.