All calculators
Inflation Calculator
See how prices grow and purchasing power shrinks over time.
Future cost
₹1,79,085
Real value today
₹55,839
Loss of value
₹44,161
How it works
Inflation is the rate at which the general price level rises. A 6% inflation means what costs ₹100 today will cost ₹106 next year. Your money loses purchasing power at the same rate unless it earns above inflation.
The formula
Future cost = P × (1 + i)^t; Real value today = P / (1 + i)^t- P
- Current amount / cost
- i
- Inflation rate (decimal)
- t
- Years
Worked example
A ₹1,00,000 car today, at 6% inflation, costs ~₹1,79,085 in 10 years. Same ₹1,00,000 kept idle is worth only ₹55,839 in today's purchasing power after 10 years.
Pro tips
- India's long-term CPI averages ~6%; use 5–7% for planning.
- Education inflation is ~10%, healthcare ~12% — plan separately for these goals.
- Only real return matters: FD at 7% during 6% inflation = 1% real return before tax.
Common mistakes
- Comparing salary/returns across decades in absolute rupees.
- Assuming inflation is the same for all goods — it isn't.
Go deeper
Related lessons
Concepts to explore
CPI vs WPICore inflationReal interest rate
Results are illustrative and do not include taxes, fees, or slippage. This is educational content — not investment, tax, or legal advice.