📉 Inflation Calculator

See how inflation reduces the purchasing power of money over time.

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What is an Inflation Calculator?

₹10 lakh sitting idle in a savings account today will not buy the same things twenty years from now — that's the simple reality this tool illustrates. An inflation calculator shows you the future cost of a good, service, or savings goal by projecting how prices rise year after year, which is essential when you're setting long-term targets like a child's education fund, a wedding budget, or a retirement corpus in India where inflation on essentials like education and healthcare often runs higher than headline CPI.

Future Value Formula

The calculation simply compounds today's amount forward by the assumed inflation rate for each year:

Future Value = Present Amount × (1 + Inflation Rate)^Number of Years

Worked Example

Suppose something costs ₹10,00,000 today, and you assume 6% average annual inflation over 20 years. Using the formula, (1.06)^20 works out to approximately 3.21, so the same item or goal would cost roughly ₹32,07,000 two decades from now. In other words, if you're saving for something 20 years away, you need to plan for more than three times today's price tag, not the sticker price you see right now.

How to Use This Calculator

  1. Enter the current amount or cost you want to project into the future.
  2. Enter an assumed annual inflation rate (6% is a common long-term estimate for India, but education and medical inflation can run 8–10%).
  3. Enter the number of years until you'll need the money.
  4. Click Calculate to see the inflated future value instantly.

Things to Keep in Mind

  • General CPI inflation and category-specific inflation can differ a lot — school fees, medical treatment, and gold have historically outpaced average inflation in India.
  • This tool is often used in reverse alongside investment planning: once you know the future cost, you can work out how much to invest today or monthly to reach it.
  • Fixed-income instruments like FDs or RDs may not always beat inflation after tax, which is why long-term goals often need a mix of equity and debt.
💡 Tip: Pair this with the Retirement Calculator to see exactly how inflation affects the size of the corpus you'll need at retirement.

📅 Last reviewed: July 2026 · Formulas verified against RBI/SEBI/IT Dept guidelines.