Inflation Calculator
Instant results as you type.
₹
%
years
The same basket will cost
₹1,79,084.77
Today's money will buy only₹55,839.48
Purchasing power lost44.16%
What this meansPrices compound the way interest does. At 6% a year, 10 years multiplies what things cost by 1.79× — which is the same as saying the money you hold today loses 44.16% of what it can buy.
For education and planning only. Your bank or lender’s actual figures can differ — fees, rounding, day-count conventions and local rules vary. Always confirm the final numbers with your provider before deciding.
Inflation is the quiet reason a plan that looks sufficient today is not. At 6 per cent, prices roughly double every twelve years — so a retirement corpus, a school fee estimate or a savings target set in today's money is understating the real number. This calculator shows both sides: what a given cost becomes, and what today's money will actually buy by then.
How to use it
- Enter an amount in today's money.
- Enter an inflation rate and how many years ahead you are looking.
- Read the future cost, and how much purchasing power that amount loses.
Examples
- 1 lakh today costs about 1.79 lakh in 10 years at 6% inflation.
- Put the other way, today's 1 lakh will buy only what 55,839 buys now — a 44% loss of purchasing power.
Frequently asked questions
- What inflation rate should I assume?
- India's consumer inflation has generally run in the 4 to 7 per cent band in recent years, and 6 per cent is a common planning assumption. For education and healthcare, use more — those have historically risen faster than the headline index, often 8 to 10 per cent. Planning with a rate that is too low is the more expensive mistake.
- Why does my savings account lose money in real terms?
- Because the interest is below inflation. A savings account paying 3 per cent while prices rise 6 per cent loses roughly 3 per cent of purchasing power a year, even though the balance is growing. The number in the account rises while what it can buy falls — which is why cash is safe in the short run and costly in the long run.
- How much does inflation affect retirement planning?
- Enormously, because the horizon is long. An expense of 50,000 a month today becomes about 1.6 lakh a month in twenty years at 6 per cent. Any retirement figure quoted in today's money needs to be inflated to the year you retire, and then keep growing through retirement.
- Is my personal inflation the same as the headline number?
- Rarely. The published index reflects an average basket, and yours is not average — a household paying school fees and medical premiums typically experiences higher inflation than one whose spending is mostly food and fuel. If your major costs are in fast-rising categories, plan with a rate above the headline figure.