// INFLATION CALCULATOR

Inflation Calculator

See what today's amount will cost in the future and how much purchasing power is lost to inflation.

// INPUTS

TODAY'S AMOUNT

₹

INFLATION RATE (% / year)

NUMBER OF YEARS (years)

// OUTPUT

SAME BASKET WILL COST

₹3,20,714

PURCHASING POWER OF TODAY'S AMOUNT₹31,180

LOSS IN PURCHASING POWER68.82%

// FORMULA

FutureCost = TodayAmount × (1 + i) ^ Years
PurchasingPower = TodayAmount / (1 + i) ^ Years

i = inflation rate as a decimal.

// EXAMPLE

// WORKED OUT

₹1,00,000 today, 6% inflation, 20 years:
  Same basket later: ₹3,20,714
  Today's ₹1 lakh later buys: ₹31,180 of today's stuff
  Purchasing power lost: ~68.8%

// WHAT THIS MEANS

Inflation has the same compounding shape as a return — just working against you. A 6% inflation rate cuts the purchasing power of a rupee by more than two-thirds over 20 years. Long-term plans that ignore inflation routinely fall short by a factor of 2× or more.

// FAQ

Which inflation rate should I use?+

For India, the long-run CPI average has been around 6%. For specific goals (education, healthcare), use a category-specific rate, which is often higher than headline CPI.

Is inflation the same for everyone?+

No. Headline inflation is an average of a basket. Your personal inflation depends on what you actually spend on.