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.
Enter a value that satisfies the displayed range and increment.
Enter a value that satisfies the displayed range and increment.
Enter a value that satisfies the displayed range and increment.
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 can lose purchasing power in real terms. The result does not determine an appropriate investment, return target, or asset allocation.
Methodology and limits
- Method version
inflation-compound-v1- Class
- A / R1 (pure-math)
- Effective date
- not-applicable
- Jurisdiction
- not-applicable
- Source status
- not-required-pure-math
- Rounding
- Keep full precision for calculation; round only when formatting displayed INR values.
- Review trigger
- formula, input-contract, rounding, or methodology-copy change
Formula: futureCost = amount × (1 + annualRatePercent / 100)^years; futurePurchasingPower = amount ÷ (1 + annualRatePercent / 100)^years
Educational boundary: Educational illustration only; it is not a CPI forecast, a product recommendation, or personalised financial advice.
Included: A single stated amount; A user-entered annual inflation assumption; A whole-year time horizon
Excluded: Actual future CPI; Tax, investment-return or salary forecasts; Household-specific inflation or suitability advice
Inputs: amount (INR; 1000–100000000; default 100000, existing public route default) · annualRatePercent (percent per year; 1–15; default 6, existing public route default) · years (whole years; 1–50; default 20, existing public route default)
Outputs: futureCost (INR; raw calculation; displayed rounded to nearest rupee) · futurePurchasingPower (INR in today’s purchasing-power terms; raw calculation; displayed rounded to nearest rupee)
Assumptions: The stated annual inflation rate compounds once per year. The same rate applies throughout the selected whole-year horizon.
- Educational illustration only.
- Does not forecast actual CPI or a household-specific inflation rate.
- Does not include taxes, investment returns, or product recommendations.
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.
Is the entered inflation rate a forecast?
No. It is a user-controlled scenario. Actual CPI and household-specific price changes can differ materially; compare multiple rates rather than treating the default as a forecast.
Why does inflation matter for investing?
Inflation can reduce purchasing power. This calculator does not recommend an asset, product or return target and does not compare investment risk, fees or tax.
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.