Inflation Calculator
Real purchasing power of your money
See how inflation erodes the value of money over time and how much you’ll need to maintain today’s lifestyle.
Inflation-proof your savings.
Goal-based planning that adjusts for inflation. Free first session with a CFP.
What is an Inflation Calculator?
Inflation is the rate at which prices rise — and the rate at which your rupee silently loses buying power. A ₹100 coffee today is a ₹179 coffee in 10 years at 6% inflation. If your bank account earns 4%, you’re losing 2% a year in real terms, even though the number on your statement goes up.
Our calculator uses the standard compounding formula: FV = PV × (1 + r)^n, where PV is today’s amount, r is the inflation rate, and n is years. It also computes the reverse — what today’s ₹10 lakh will feel like after inflation eats into it.
Use it to set realistic retirement numbers, education goals, and return expectations. If a fund returns 7% in a 6%-inflation world, you made 1%. That’s the only return that matters.
Why use this Inflation Calculator
Built for Indians, by Indians. Every number, every formula, every slab — tuned to FY 2026-27 reality.
Future value in today’s terms
See what a future corpus is actually worth in today’s rupees.
Purchasing power erosion
Visualises exactly how much real value inflation strips away each year.
Goal-proof your plans
Adjust retirement, education, or lifestyle targets for realistic inflation.
Any rate, any tenure
Model low (3%), average (6%), or high (10%) inflation across 1–40 years.
Using the Inflation Calculator in 4 steps
No onboarding, no signup. Answer three fields and the numbers update live.
Enter today’s amount
Use the cost of a real goal — retirement monthly expense, school fees, annual lifestyle spend.
Set inflation rate
India’s long-term CPI is ~5–6%. For education and healthcare, use 8–10%; for urban lifestyle, 7%.
Pick horizon
How many years until you’ll actually spend the money. Longer = more shocking the number.
Plan your corpus
The future value is what you’ll need. Work backwards to the SIP that funds it.
Tips to get the most out of it
Use category-specific inflation, not headline CPI. Healthcare inflates faster than groceries.
Retirement corpus should cover 25–30 years of inflated expenses — not today’s expenses. Most planners get this wrong.
Always judge investment returns in real terms (return minus inflation). 7% FD in a 6% world is nearly free money — for the bank.
Revisit long-term goals every 3 years. Indian inflation can shift in both directions; targets need recalibration.
When comparing historic prices or salaries, convert to today’s rupees using an inflation calculator — otherwise you’ll draw the wrong conclusion.
Real-world scenarios
How Indians actually use this calculator — concrete inputs, concrete outcomes.
Retirement in 20 years
Today’s ₹60,000/month lifestyle needs ~₹1.92 lakh/month in 20 years at 6% inflation. Corpus target: ~₹4–5 crore (not ₹2 crore).
Child’s college in 15 years
A ₹20 lakh engineering course today costs ~₹63 lakh in 15 years at 8% education inflation. SIP-plan to this, not the current fee.
₹1 crore idle in savings
₹1 crore left in a 3% savings account for 10 years at 6% inflation falls to ₹75 lakh in real terms. A ₹25 lakh quiet loss.
Frequently Asked Questions
Still have a question? Our team replies within a business day.
India’s CPI (Consumer Price Index) has averaged ~5–6% over the last decade, with the RBI targeting 4% ± 2%. Specific categories differ: healthcare 7–8%, education 8–10%, urban housing 5–7%.
If your returns are below the inflation rate, you lose purchasing power every year. A 4% savings account in a 6% inflation environment is a 2% annual real loss — your money grows on paper but buys less.
Nominal return is the headline number (e.g., 10%). Real return is nominal minus inflation (10% − 6% = 4%). Only real return grows your actual wealth. Always think in real terms for long horizons.
Use 6–7% for general expenses and 8–9% for healthcare. Retirees face higher effective inflation because healthcare becomes a bigger share of spend over time.
Yes. FV = PV × (1 + r)^n compounds annually — the same formula used for compound interest, applied to prices instead of principal.
Mild, predictable inflation (2–4%) encourages spending and investment, and helps borrowers. High or volatile inflation hurts savers, fixed-income earners, and anyone on a pension. Deflation is worse than mild inflation.
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