Inflation Calculator
Calculate future value and purchasing power impact of inflation.
Inflation Details
Year-wise Impact
| Year | Future Value Needed | Today's Value | Power Lost |
|---|
An inflation calculator helps estimate how rising prices reduce purchasing power over time. It shows what a current amount may be worth in the future and how much future money you may need for the same lifestyle. This is essential for long-term planning in India and globally, where inflation rates can vary by country and period.
Why inflation matters
Ignoring inflation can make financial plans look healthier than they actually are. Even moderate inflation compounds significantly over long periods, affecting education, healthcare, housing, and retirement goals. The calculator converts present value to future value under assumed inflation rates.
Inflation adjustment formula
Common use cases
- Estimating future education expenses for children.
- Planning retirement corpus with real purchasing power.
- Comparing salary growth against inflation trends.
- Stress-testing long-term financial goals.
How to use this inflation calculator
- Enter current cost or expense amount.
- Enter expected annual inflation rate.
- Enter number of years.
- View projected future cost and purchasing power impact.
- Use results to update savings and investment targets.
Worked example
If annual household expense is Rs 12,00,000 today and inflation is 6% for 15 years, future annual expense becomes about Rs 28,75,000. You would need more than double the current amount to maintain the same standard of living.