Inflation Calculator
Calculate the future cost of today's money, or its future purchasing power, based on an assumed annual inflation rate.
Result
What is Inflation Calculator?
Inflation is the persistent rise in the general price level of goods and services over time, which directly reduces the purchasing power of your money. A monthly household budget of ₹50,000 today will require substantially more money in 10, 20, or 30 years to maintain the exact same standard of living. This calculator performs two essential financial projections: first, the future cost required to buy today’s basket of goods; second, the future purchasing power of a fixed rupee sum if stored without growth. Use this tool to set realistic targets for retirement corpora, higher education funds, healthcare expenses, and long-term financial goals in India.
How to use Inflation Calculator
- 1Enter the current monetary amount in rupees (₹) representing an expense or savings sum.
- 2Enter the assumed annual inflation rate as a percentage (e.g., 6% for general CPI or 8–10% for education/medical).
- 3Enter the number of years into the future you wish to project.
- 4Review the future cost required to buy the same lifestyle and what today’s fixed cash will feel like worth.
Key features
Future Expense Escalation
Projects future cost of living based on compound inflation: Future Cost = Amount × (1 + r/100)^t.
Purchasing Power Erosion
Calculates the depreciated real purchasing value of uninvested cash savings over time.
Custom Multi-Decade Horizons
Supports long-term financial modeling from 1 year to 50+ years.
Goal-Specific Inflation Scenarios
Enables modeling general CPI (5-7%) or specialized baskets like higher education/medical (8-10%).
Instant Side-by-Side Outputs
Displays future cost and degraded money value simultaneously in clear Indian Rupee formatting.
Examples & use cases
Household Monthly Budget (₹50,000 at 6% for 15 Years)
At 6% annual inflation, a monthly living expense of ₹50,000 today will escalate to ₹1,19,828 per month in 15 years to sustain the same lifestyle.
Child Higher Education Fund (₹25,00,000 at 8% for 12 Years)
Higher education inflation in India often averages 8% to 10%. A college course costing ₹25 Lakh today will cost ₹62,99,098 in 12 years.
Purchasing Power of Cash Savings (₹10,00,000 at 6% for 20 Years)
If ₹10 Lakh in cash is kept in a zero-interest safe for 20 years at 6% inflation, its purchasing power diminishes to just ₹3,11,805 in today’s terms.
Frequently asked questions
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