About the Inflation Calculator
What is the Inflation Calculator?
Inflation is the rate at which prices rise over time. At 6% inflation, something that costs ₹1 lakh today will cost about ₹1.79 lakh in 10 years — so money kept idle quietly loses value.
Enter a current amount, an expected inflation rate and the number of years. The calculator shows the future cost and the extra amount inflation adds. Use it to set realistic targets for goals such as education, a wedding or retirement.
How to use the Inflation Calculator
- Current Amount (INR) (sample: 1,00,000)
- Inflation Rate (% per year) (sample: 6)
- Years (sample: 10)
- Press Project Inflation (results also refresh as you type). The result card shows the Future Cost, along with Current Cost, Inflation Impact and Years.
Formula used
Future cost = Present cost × (1 + i)ⁿ
- i = the annual inflation rate
- n = the number of years
Purchasing power of money after n years = amount ÷ (1 + i)ⁿ.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Current Amount (INR) | 1,00,000 |
| Inflation Rate (% per year) | 6 |
| Years | 10 |
| Result | Value |
|---|---|
| Future Cost | ₹1,79,085 |
| Current Cost | ₹1,00,000 |
| Inflation Impact | ₹79,085 |
| Years | 10 |
Tips for using the Inflation Calculator
- India's CPI inflation has averaged roughly 5–6% over the last decade; education and healthcare costs often rise faster.
- Your investments need to earn more than inflation after tax just to preserve purchasing power.
- Use the SIP Real Return Calculator to see investment values in today's money.