Calcyuncle EMI Calculator

Inflation Calculator

Prices rise every year, so the same amount buys less over time. See what something that costs a given amount today will cost in future, and what today’s money will be worth then.

Details

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Year-by-year

Future Cost, Year by Year

What the same thing will cost at the end of each year at a constant inflation rate.

Growth over time

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Amounts are rounded to the nearest rupee for display; calculations use full precision.

Assumes a constant inflation rate. Actual inflation changes every year and differs between goods — education and healthcare costs often rise faster than average. Read our disclaimer.

What is Inflation?

Inflation is the general rise in prices over time. When prices rise, each rupee buys a little less. A savings plan that ignores inflation will fall short, because the goal you are saving for will cost more by the time you get there.

Inflation Formulas

Future cost = Cost today × (1 + i)t
Value of today’s money later = Amount ÷ (1 + i)t

Worked example

At 6% inflation, something that costs ₹1,00,000 today will cost about ₹1,79,085 in 10 years. Turned around, ₹1,00,000 kept as cash for 10 years will buy only what about ₹55,839 buys today.

Using Inflation in Your Plans

  • Goals: inflate the cost of each goal to the year you need the money, then plan your savings for that figure.
  • Real return: an investment earning 7% when inflation is 6% grows your purchasing power by only about 1% a year.
  • Retirement: ₹50,000 of monthly expenses today becomes about ₹2,14,594 a month in 25 years at 6% — see the retirement calculator.

Which Rate to Use

General consumer inflation in India has mostly been in the 4–7% range in recent years. For long-term planning, 6% is a common middle estimate. Education and healthcare costs have often risen faster, so use 8–10% for those goals.

Frequently Asked Questions

How is the future cost calculated?

Future cost = today’s cost × (1 + inflation rate)^years. At 6% inflation, something that costs ₹1,00,000 today will cost about ₹1,79,085 in 10 years.

What does purchasing power mean?

It is what your money can actually buy. At 6% inflation, ₹1,00,000 kept as cash for 10 years will buy only what about ₹55,839 buys today.

What inflation rate should I use?

For general planning in India, many people use 5–7% a year. For specific goals use a higher figure where costs have historically risen faster, such as education or medical expenses.

Does the calculator store my numbers?

No. All calculations run inside your browser. The amounts you enter are not sent to our server or saved anywhere.