Inflation Calculator
Find how much a sum of money will be worth in the future — or what a past amount equals today — after accounting for inflation. Understand how inflation erodes purchasing power over time.
Educational Purpose Only: Actual inflation varies. Results are estimates based on the rate you enter.
How inflation affects your money
Inflation is the rate at which the general price level of goods and services rises over time, reducing the purchasing power of money. If inflation is 6% per year, something that costs ₹1,00,000 today will cost approximately ₹1,79,085 in 10 years. Conversely, ₹1,00,000 today will only buy what ₹55,839 bought 10 years ago.
India's average CPI (Consumer Price Index) inflation has been around 5–7% over the past decade. The RBI targets inflation in the 2–6% band. For financial planning, using 6% as a conservative long-term inflation assumption is a common approach.
Why you must beat inflation with investments
If your savings account earns 3.5% while inflation runs at 6%, you are effectively losing purchasing power every year. This is why financial planners emphasise investing in assets that can grow faster than inflation — equity mutual funds, stocks, and real estate historically outpace inflation over long periods, while fixed deposits and savings accounts often lag it.
Use this calculator alongside a SIP or lump sum calculator to check whether your projected investment returns will outpace inflation and grow your real wealth over time.
This calculator is for educational and illustrative purposes only. Actual inflation rates vary and are not guaranteed. Results are based on the inflation rate you enter and should not be treated as financial advice.