🚀 Advanced
Inflation Calculator
Understand how inflation erodes the real value of your money over time. Calculate what today's amount will be worth in the future and how much more you will need to maintain the same lifestyle.
Inflation Details
₹1K₹1 Cr
1%20%
1 yr50 yrs
Future Cost (after inflation)
₹--
what you'll need to buy the same thing
Today's Value--
Purchasing Power Lost--
Real Value of ₹1 Lakh Today--
Inflation Multiplier--
Purchasing Power Erosion
Formula
Future Cost = P × (1 + i)n
Real Value = P ÷ (1 + i)n
P = Present amount i = Annual inflation rate ÷ 100 n = Years
Real Value = P ÷ (1 + i)n
P = Present amount i = Annual inflation rate ÷ 100 n = Years
India's average CPI inflation has been ~5-6% over the last decade. At 6% inflation, ₹1 lakh today becomes ₹1.79 lakh in 10 years — meaning you need ₹1.79 lakh to buy what ₹1 lakh buys today.
Frequently Asked Questions
India's CPI (Consumer Price Index) inflation averages 5-6% annually. Food inflation is typically higher (6-8%), while core inflation (excluding food and fuel) is lower. The RBI targets 4% inflation with a ±2% band.
If your investment returns 8% and inflation is 6%, your real return is only ~1.9% (not 2%). This is why investments must beat inflation to build actual wealth. FDs at 7% with 6% inflation barely maintain purchasing power.
Historically: Equities (Nifty 50 ~12% CAGR), Real estate in metros (~8-10%), Gold (~8-9%). These beat 6% inflation. FDs (6-7%) and savings accounts (3-4%) barely match or lose to inflation.