Inflation Details
Common scenarios
Future Cost (same goods)
what ₹1,00,000 of goods will cost after 10 years
Today's Cost
₹0
Extra Needed
₹0
Cost Rise
0%
Money vs Inflation
If you do nothing, your expenses grow to this amount.
What today's amount can buy after inflation, in today's prices.
To simply maintain your lifestyle, your money must grow at least 6% every year just to keep up with inflation.
Year-by-Year Impact
Rising cost vs falling purchasing power
Year-by-Year Schedule
Future cost and real value at the end of each year
| Year | Inflation Factor | Future Cost | Real Value (today) |
|---|
What Is an Inflation Calculator?
Inflation is the steady rise in the price of goods and services over time. As prices rise, each rupee buys a little less — so the money you hold today loses purchasing power every year.
An inflation calculator shows you two things at once: how much a given expense will cost in the future, and how much the real value of your money shrinks if it just sits idle. It turns an invisible cost into a number you can plan around.
How Is Inflation Calculated?
The future cost of money compounds at the inflation rate, just like compound interest works in reverse on your purchasing power:
Where FV is the future cost, PV is today's amount, i is the annual inflation rate (decimal), and n is the number of years.
Dividing instead of multiplying tells you what today's money will actually be worth in tomorrow's economy.
Example Calculation
Suppose your household spends ₹1,00,000 a year today, and inflation runs at 6% for the next 10 years:
The same lifestyle costs 79% more in 10 years. ₹1 lakh kept idle would buy only ₹55,839 worth of goods in today's terms — a loss of nearly half its value.
Why Calculating Inflation Matters
- →It sets realistic goals — a ₹50 lakh retirement target sounds large, but inflation may make it worth a fraction of that by the time you retire.
- →It exposes the cost of idle cash — money in a low-interest account silently loses value every single year.
- →It guides where to invest — you can clearly see why your returns must beat inflation to actually grow wealth.
- →It plans big future expenses — education, healthcare and a home all inflate, often faster than headline CPI.
Frequently Asked Questions
Common questions about inflation and the value of money