What is an Inflation Calculator?
An inflation calculator shows how rising prices affect your money over time. It calculates the future cost of something you buy today and the purchasing power your money will have in the future if it doesn't grow.
Use it to set realistic targets for goals like your child's education, a house or retirement — and to see why keeping long-term savings idle in cash loses value.
How to use the Inflation Calculator
- 1Enter the current cost or amount.
- 2Enter the expected inflation rate (India's long-term CPI average is around 5–6%; education and healthcare often run at 8–10%).
- 3Enter the number of years.
- 4See the future cost and today's money's future purchasing power.
Inflation Calculation Formula
Future cost = Present cost × (1 + i)ⁿ; Purchasing power = Amount ÷ (1 + i)ⁿ
- i
- — Annual inflation rate ÷ 100
- n
- — Number of years
Example: ₹1 lakh at 6% inflation for 10 years
| Cost of today's ₹1 lakh expense in 10 years | ₹1,79,085 |
|---|---|
| What ₹1 lakh in cash will buy in 10 years | ₹55,839 in today's terms |
How to protect your money from inflation
- Invest long-term money in assets that have historically beaten inflation, such as equity mutual funds and stocks.
- Use the SIP and retirement calculators with inflation-adjusted targets.
- Keep only your emergency fund and short-term needs in savings accounts and FDs.
- Increase your investments every year with a step-up SIP as your income rises.
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Results from this calculator are estimates based on the inputs and assumptions you enter. They are for information and education only and are not financial, tax or investment advice.