Inflation Calculator
Understand how inflation erodes your purchasing power with our free Inflation Calculator. Calculate future costs, see how prices change over time, and plan your finances to stay ahead of inflation.
Purchasing Power Over Time
Real World Impact
See how inflation affects everyday expenses
Year-by-Year Inflation Impact
| Year | Cost/Value | Yearly Increase | Purchasing Power of ₹1L |
|---|
Key Features
How to Use This Calculator
Understanding Inflation
Inflation is the silent enemy of wealth. It gradually reduces the purchasing power of money, meaning the same amount buys less over time. Our Inflation Calculator helps you understand this impact and plan accordingly.
The inflation calculation is: Future Cost = Present Cost × (1 + Inflation Rate)^Years. At 6% annual inflation, something costing ₹100 today will cost ₹179 in 10 years and ₹321 in 20 years.
Understanding real returns is crucial for investors. If your investment returns 10% but inflation is 6%, your real return is only about 4%. This is why investments must beat inflation to actually grow wealth.
Different expenses inflate at different rates. Education and healthcare costs often increase faster than general inflation, while technology costs may decrease. Consider specific inflation rates for important planned expenses.
Inflation particularly impacts retirement planning. A comfortable retirement income today will feel inadequate in 20 years if not adjusted for inflation. Plan for expenses to roughly double every 12 years at 6% inflation.