Inflation Calculator
Calculate the future cost of an item or the future purchasing power of your money, adjusted for inflation.
How Does Inflation Affect Money?
Inflation erodes the purchasing power of money over time — the same amount buys less in the future than it does today. This calculator works in two directions: it can show what today's cost of an item will be N years from now, or what today's amount will feel worth in the future once inflation has eaten into it.
Future Cost = P × (1 + i)n | Purchasing Power = P ÷ (1 + i)n
- P — Today's amount
- i — Annual inflation rate
- n — Number of years
For example, an item costing ₹1,00,000 today will cost about ₹1.79 lakh in 10 years at 6% inflation — and conversely, ₹1,00,000 held as cash today will only have the purchasing power of about ₹55,839 ten years from now.
Frequently Asked Questions
What inflation rate should I use for India?
India's long-term average retail inflation (CPI) has generally been in the 4–7% range. Use a rate that reflects the specific goal you're planning for — education and healthcare costs, for instance, often rise faster than general inflation.
Why does cash lose value even if I don't spend it?
Because prices rise over time. If your savings don't earn a return at least equal to inflation, the real, inflation-adjusted value of that money shrinks every year even though the number in your account stays the same.