Inflation Calculator
See what today's rupees may be worth after inflation over time.
How does this inflation calculator work?
Enter a current amount, inflation rate, and time period to see what your money will be worth in real terms after inflation.
Formula
Real Value = P / (1 + r)n Where:
- P = Current (principal) amount
- r = Annual inflation rate (decimal)
- n = Number of years
Nominal value stays the same; inflation reduces what that amount can actually buy in today's rupees.
Why it matters
- Compare cash or low FD returns with inflation
- See how much you may need in future rupees for a goal
- Check real value after inflation, not just the headline number
- Pair with return assumptions on other calculators
Note: Inflation assumptions are estimates. Your personal cost of living may differ. Not financial advice.
Inflation Calculator: guide and FAQ
What is it?
Inflation means prices rise over time, so the same rupee buys less later. This calculator shows what a future amount is worth in today's rupees, or how much you may need in future rupees to match today's spending power.
How to use this calculator
- Enter amount today Enter a cost or saving in today's rupees.
- Set expected inflation rate Many long-term plans use 5-7% for general expenses. Medical and education costs often run higher.
- Choose years ahead Enter how far ahead you are planning.
- Compare nominal vs real value Nominal is the rupee figure in the future. Real value is what that future figure is worth in today's terms.
Worked example
₹1 lakh today at 6% inflation for 10 years needs about ₹1.79 lakh in future rupees to buy the same goods in this model.
Practical tips
- School fees and medical bills often rise faster than general CPI.
- Equity has historically beaten inflation over long periods, but with short-term swings.
Frequently asked questions
What inflation rate should I use for retirement planning?
6% is a common starting point for general living costs. Use a higher rate for health or education goals if you expect sharper rises.
How does this relate to investment returns?
Rough real return is investment return minus inflation. Example: 10% return and 6% inflation is about 4% in real terms.
Is inflation the same as CPI?
CPI is the official index. Your personal inflation depends on what you actually spend on.