Inflation Calculator
Enter something you spend money on today and an assumed inflation rate to see what it might cost in the future — and what today's rupees will be worth then.
Your numbers
What this calculator shows
Inflation is the gradual rise in prices. This calculator shows two sides of it: how much more a fixed expense will cost after a number of years, and how much less a fixed amount of money will buy. Both use the same inflation rate you enter.
The formula, in plain words
Future cost = cost today × (1 + inflation)^years. Purchasing power of an amount = amount ÷ (1 + inflation)^years. These are the same compounding maths as investment growth, working against you instead of for you.
A worked example
A household expense of ₹50,000 a month today would cost about ₹89,500 a month in 10 years at 6% inflation, and about ₹1.6 lakh in 20 years. Turned around, ₹50,000 kept as cash for 10 years would buy only what about ₹27,900 buys today. That is why long-term goals usually need to be planned in future rupees, not today's.
Assumptions and limits
- One steady inflation rate; actual inflation changes from year to year.
- Your personal inflation depends on what you spend on and can differ from the official average.
- This is arithmetic, not a forecast of future prices.
Frequently asked questions
What inflation rate should I use?
Different expenses rise at different speeds — education and healthcare costs have often risen faster than overall consumer prices. Try a few rates; official consumer price inflation figures are published by the Ministry of Statistics (MoSPI).
What does 'will buy what costs today' mean?
It is purchasing power: the amount you enter, if kept as cash, would buy in the future only what that smaller amount buys today.
Why does this matter for investing?
If your money grows more slowly than inflation, you are losing purchasing power even though the rupee amount goes up. Real return is what's left after inflation.
These figures are estimates for learning and planning, not investment, tax, or legal advice. Returns on market-linked investments are not guaranteed, and real outcomes depend on fees, taxes, timing, and actual returns. See our disclaimer.