Inflation Calculator
See the future cost of money and real purchasing power.
Last updated: Aug 3, 2026
Disclaimer: Results here are estimates for general understanding only and are not financial, tax, investment or legal advice. Figures assume constant rates and inputs, and may differ from your bank, lender or tax department calculations. Always verify with official sources or a qualified professional before making any financial decision.
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Inflation Impact
$$ \text{Future Value} = P \times (1 + i)^n $$
Step 1
$$ P = \text{current amount} $$
Today’s price or savings value.
Step 2
$$ i = \text{annual inflation rate} $$
Expected average inflation (often 5–6% in India).
Step 3
$$ n = \text{number of years} $$
Time horizon.
Step 4
$$ FV = P(1+i)^n $$
Amount needed in the future to buy the same goods.
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About Inflation Calculator
Inflation reduces the purchasing power of money over time. A product that costs ₹1 lakh today may cost significantly more in 10 or 20 years. This calculator shows the future value of a current amount at a given inflation rate and also the real value of a fixed sum in today’s rupees.
Long-term average CPI inflation in India has been around 5–6%. Use this tool when planning education costs, retirement expenses or any multi-year financial goal.
Practical Tips (India)
Tip 1: Retail inflation in India has averaged around 4–6% in recent years; assume at least 6% for long-term planning.
Tip 2: Your real return is (nominal return − inflation). A 7% FD earns only ~1% real if inflation is 6%.
Tip 3: Education and healthcare costs typically inflate faster than the CPI average — plan for 8–10% for those goals.
Frequently Asked Questions
What inflation rate should I use for India?
5–6% is a reasonable long-term planning assumption based on historical CPI data. For education or healthcare, some planners use slightly higher rates.
How does inflation affect fixed deposits?
If FD rate is 7% and inflation is 6%, real return is only about 1%. After tax the real return can be zero or negative.
Why is this important for retirement?
Expenses rise every year. A corpus that looks large today may support a lower lifestyle after 20–25 years of inflation.
Can inflation be negative?
Deflation is rare in India. Most planning scenarios use positive inflation rates.
Does the calculator show real return?
It shows the future nominal amount needed. To find real return on an investment, subtract inflation rate from the nominal return (approximation).