Inflation Calculator
See what today's money will be worth in the future, and what today's expenses will cost — at a given inflation rate.
Future Cost of Today's Expense
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Future Value of Today's Money
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How the inflation calculator works
Enter an amount, an inflation rate, and a time horizon. The calculator shows both sides of inflation: how much more the same basket of goods will cost in future (× (1 + i)n), and how much today's money will actually be worth then (÷ (1 + i)n).
The silent tax on cash
At 6% inflation, prices double roughly every 12 years and the purchasing power of idle cash halves. That is why simply "saving" in a low-interest account loses you money in real terms — and why long-horizon goals need investments that aim to outpace inflation after tax.
Frequently Asked Questions
What does this inflation calculator show?
It shows two things: the future cost of something that costs a given amount today, and the future purchasing power of money you hold today. Both illustrate how inflation quietly erodes the value of cash over time.
What inflation rate should I assume for India?
India's long-run retail (CPI) inflation has averaged around 5–6%. The RBI targets 4% with a tolerance band of 2–6%. Lifestyle and education inflation are often higher, so 6% is a reasonable planning default.
Why does inflation matter for investing?
If your savings earn less than inflation, you lose purchasing power even as the rupee figure grows. Beating inflation after tax is the real goal — which is why long-term money is often invested in equity rather than left in low-yield deposits.
How is future value calculated?
Future cost = Present cost × (1 + inflation)^years. Future purchasing power of today's money = Amount ÷ (1 + inflation)^years.
Disclaimer: This calculator produces illustrative estimates only. Actual returns vary and, unless stated otherwise, results exclude expense ratios, exit loads, transaction costs, and taxes. Assumed rates are inputs, not forecasts or assured returns. This is educational content, not personalized investment advice — see our full disclaimer.