Inflation Calculator
What will today's ₹1,00,000 cost in ten years — and what will ₹1,00,000 in ten years be worth today? Both answers, from one set of inputs.
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How to use this calculator
- Enter amount today — A cost, a salary, or an amount of savings.
- Enter expected inflation — India's long-run inflation has often been around 5–7%.
- Enter number of years
- Read the result — it updates as you type.
The formula used
Future cost = P × (1 + i)t · Today's value = P ÷ (1 + i)t
- P
- The amount you entered
- i
- Inflation rate as a decimal (6% = 0.06)
- t
- Number of years
Inflation compounds exactly like interest — it is compound interest working against you. The two formulas above are the same equation, read in opposite directions.
Worked example
₹1,00,000 at 6% inflation for 10 years.
- P₹1,00,000
- (1 + 0.06)¹⁰1.79085
- Future cost = ₹1,00,000 × 1.79085 = ₹1,79,085
- Today's value of ₹1,00,000 in 10 years = ₹1,00,000 ÷ 1.79085 = ₹55,839
Something costing ₹1,00,000 today will cost about ₹1.79 lakh in ten years. Equivalently, ₹1,00,000 received then buys what ₹55,839 buys now — a 44% loss of purchasing power.
Inflation is the number that quietly changes every plan
Inflation is the rate at which things get more expensive. It rarely feels dramatic year to year, which is exactly why it is so easy to underestimate over a decade or more.
Use it before setting any goal
A car that costs ₹10 lakh today will cost about ₹18 lakh in ten years at 6%. Setting a ₹10 lakh goal for it guarantees a shortfall. Inflate the cost first, then plan for that number with the Goal Calculator.
Your personal inflation is probably higher
Published inflation figures are an average across a basket of goods. School fees, medical treatment and rent in cities have typically risen faster than the headline number. If those are large parts of your budget, use a rate a point or two above the official figure.
The savings account trap
A savings account paying 3% while inflation runs at 6% loses you about 3% of purchasing power a year, even though the balance keeps rising. The balance going up is not the same as being better off.
Tips and common mistakes
Getting more out of it
- Run every long-term goal through this before setting a target amount.
- If a large part of your spending is school fees or medical care, use a rate above the headline figure.
Mistakes to avoid
- Planning a goal at today's prices, which guarantees falling short.
- Assuming a savings account keeps pace. At 3% against 6% inflation, the balance grows while the buying power shrinks.
- Treating the official inflation rate as your personal one — your basket is not the national average.
Frequently asked questions
What inflation rate should I use?
For long-term Indian planning, 6% is a common assumption. Use 7–8% if a large share of your spending is on healthcare or education, which have historically risen faster.
Does this use real historical inflation data?
No. It uses the rate you enter and applies it evenly across the whole period. There is no data feed behind this site.
How is inflation different from interest?
Mathematically it is identical — both compound. The difference is direction: interest grows your money, inflation shrinks what your money can buy.
How do I beat inflation?
By earning a return above it after tax. The Inflation-Adjusted Return Calculator shows whether a given investment actually does.
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