Inflation Calculator
Enter an amount, an inflation rate and a number of years. You get the amount you would need later to buy what it buys today, and how much purchasing power is lost.
What ₹1.00 L buys today will cost
₹3,20,714
after 20 years at 6% a year.
- Extra needed
- ₹2,20,714
- Purchasing power lost
- 69%
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Cost of the same things, year by year
- Year 2 ₹1.12 L
- Year 4 ₹1.26 L
- Year 6 ₹1.42 L
- Year 8 ₹1.59 L
- Year 10 ₹1.79 L
- Year 12 ₹2.01 L
- Year 14 ₹2.26 L
- Year 16 ₹2.54 L
- Year 18 ₹2.85 L
- Year 20 ₹3.21 L
How inflation changes the value of money
Prices rise over time, so the same amount buys less. If something costs ₹1,00,000 today and prices rise 6% a year, it costs about ₹3,20,000 after 20 years.
The rate you enter is an assumption, not a forecast. Try a few rates, for example one lower and one higher than you expect, to see the range.
To compare an investment with inflation, subtract the inflation rate from the return. The difference is the real return.
The formula
Future cost = amount today × (1 + inflation rate)ⁿ, where n is the number of years and the rate is written as a decimal (6% = 0.06).
Common questions
How do I calculate the future value of money with inflation?
Multiply today's amount by (1 + inflation rate) for each year. For ₹1,00,000 at 6% for 10 years that is 1,00,000 × 1.06¹⁰, about ₹1,79,085.
What does "impact of inflation" mean?
It is the loss of purchasing power. Money that stays the same while prices rise buys less each year. The calculator shows this as the extra amount needed later and the share of purchasing power lost.
What inflation rate should I use?
Use a rate you think is reasonable for the time period, and test a lower and a higher one. Official inflation figures are published by the Reserve Bank of India and the Ministry of Statistics, and your own costs (education, healthcare, rent) can rise faster or slower than the average.
Is this an investment or financial advice?
No. It is arithmetic on the numbers you enter. For decisions about your money, talk to a qualified adviser.
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