Skip to content
finxcal
India · Inflation

Inflation calculator

See what inflation does to money over time. Enter an amount, an inflation rate and a period to see its future cost and how much purchasing power it loses.

Inflation details

Tweak the numbers - results update live

₹1L
% p.a.
years
Future costin 10 yrs · 6%
₹1,79,085
What costs ₹1,00,000 today will cost this in 10 years.

₹79.08K

Cost rises by

extra needed

₹55.84K

Today's ₹ worth

of ₹1L then

44%

Value lost

purchasing power

Rising cost over time

What today's amount costs in future years

0y2y4y6y8y10y
Portfolio valueTotal invested

Future cost

₹1,79,085

₹55.84K worth

The silent tax

Why money shrinks over time

Inflation quietly raises prices year after year, so the same rupee buys less. Planning any long-term goal - retirement, education, a home - means projecting costs in tomorrow’s rupees, not today’s.

Future cost = Amount × (1 + rate)years

  1. 1

    Prices compound

    Each year’s rise stacks on the last, just like compound interest.

  2. 2

    Costs go up

    A goal that costs X today will cost more by the time you reach it.

  3. 3

    Money buys less

    The same savings command fewer goods in the future.

  4. 4

    Plan in future rupees

    Target the future cost, and invest to beat the inflation rate.

Questions

Frequently asked

It shows two things: the future cost of something that costs a certain amount today, and how much your money’s purchasing power will shrink over time. At 6% inflation, ₹1,00,000 of expenses today will cost about ₹1,79,085 in 10 years, and ₹1,00,000 of savings will buy only about ₹55,839 worth of today’s goods.

Future cost = present amount × (1 + inflation rate)^years. Purchasing power works in reverse: present amount ÷ (1 + rate)^years. Both use compounding, because prices rise on top of already-risen prices, just like compound interest.

India’s long-run consumer inflation (CPI) has averaged roughly 5–6% a year, though it varies. For lifestyle and education costs, many planners use a higher figure (7–10%) since those categories often rise faster than headline CPI. Use a rate that matches the expense you’re planning for.

Money kept in low-return accounts loses real value when its return is below inflation. To preserve and grow purchasing power, your investments need to earn more than the inflation rate. This is why long-term savers favour assets like equity that have historically beaten inflation.

Invest in assets whose expected return exceeds inflation over your horizon - typically a mix of equity and debt suited to your risk appetite. Use the SIP and lumpsum calculators to project growth, and compare that growth against the future cost shown here to ensure you stay ahead.