Inflation Calculator
Calculate future value of money adjusted for inflation. Plan retirement, education costs with realistic inflation-adjusted amounts.
Equivalent amount in ‘+10+’ years
Why calculate inflation?
Inflation calculator shows how much money you'll need in the future to maintain today's purchasing power. Critical for retirement planning, child education savings, and long-term financial goals. India's average inflation: 5-7%/year over recent decades. At 6% inflation, ₹100 today = ₹179 in 10 years, ₹321 in 20 years.
How to use
- Enter current amount — Today's rupee value
- Set years — Future timeframe to project
- Inflation rate — Use 5-7% for India average
- View future value — Equivalent amount needed in future
Formula
Future Value = Present Value × (1 + inflation)^years
Purchasing Power Loss = Future Value – Present Value
Example: ₹1L today at 6% inflation for 20 years = ₹3.21L needed for same purchasing power.
Tips
- Plan retirement using inflation-adjusted target
- Education costs grow at 8-10% inflation (higher than general inflation)
- Healthcare costs also outpace general inflation (10-12%)
- Salary increments should beat inflation by 3-5% for real growth
- Invest in inflation-beating assets: equity, real estate (long-term)
FAQs
What inflation rate to use?
For India: 5-7% historical average. Conservative planning: use 6-7%. Aggressive: 4-5%. RBI target: 4±2%.
Does inflation affect all goods equally?
No. Education and healthcare inflate fastest (8-12%). Technology often deflates (cheaper over time). Food inflation varies by season.
How to beat inflation?
Invest in equity (12-15% historical), real estate (long-term), gold (inflation hedge). Avoid: bank FD (just barely beats inflation), pure savings account (loses to inflation).
What was India's highest inflation?
1970s-80s: often 10-15%. 1991: ~14%. 2008: ~12%. 2020s: 4-7%. RBI has improved monetary policy stability.