Inflation Calculator

How it's calculated

Future cost = amount × (1 + inflation)^years. Buying power of today's money = amount ÷ (1 + inflation)^years.

How inflation reduces what your money buys

Inflation is the rise in prices over time. The same amount of money buys less each year, so money kept idle slowly loses value. The calculator shows both sides of this: what the same things will cost in the future, and what your money today will be worth in future buying power.

With the example values, ₹1,00,000 today will need to be about ₹1,79,085 to buy the same things in 10 years at 6% inflation. Looked at the other way, ₹1,00,000 will buy only about ₹55,839 worth of today's goods, a fall of about 44% in buying power.

Frequently asked questions

How do I calculate the future cost of something?

Multiply today's cost by (1 + inflation rate) raised to the number of years.

Why does inflation matter for investing?

Your investments need to grow faster than inflation for your money to gain real value. A return below inflation loses buying power.

What inflation rate should I use?

Use a figure that reflects what you are planning for. Education and healthcare costs often rise faster than general inflation.

How to use the Inflation Calculator

Enter amount today, inflation (p.a.), years. The calculator updates as you type and shows Same things will cost, along with the figures behind it. It runs in your browser, so nothing you enter is sent anywhere. Use the Reset button to go back to the example values.