Inflation Calculator
See both sides of inflation: how much a given expense will cost in the future, and how little today’s money will be worth then — in real purchasing power.
Inflation Inputs
Future Cost in 10 years
₹1,79,085
₹1,00,000 today → worth only ₹55,839 then
Future Cost of Today’s Basket
₹1,79,085
Future Value of Today’s Money
₹55,839
₹1,00,000 will buy this much
Purchasing Power Lost
₹44,161
Price Multiplier
1.79×
How It Works
Inflation is the steady rise in prices that quietly erodes the value of money. It works in two directions, and this calculator shows both. First, the future cost: something that costs ₹1 lakh today will cost much more in the future — at 6% inflation, about ₹1.79 lakh in 10 years. Second, the future value of money you hold: ₹1 lakh kept as cash will only buy what about ₹56,000 buys today after 10 years at 6%. This is why money sitting idle actually loses value, and why investments need to beat inflation just to preserve purchasing power. Long-run consumer inflation in India has averaged roughly 5–7%. Understanding inflation is essential for goal planning — a retirement or education target set in today’s rupees must be scaled up for the years until you need it.
Formula
Future cost = Amount × (1 + inflation)^years. Future value of today’s money = Amount ÷ (1 + inflation)^years.
Frequently Asked Questions
How does inflation reduce the value of money?
As prices rise, each rupee buys less. At 6% inflation, ₹100 buys only about ₹94 worth of goods next year. Over decades this compounds dramatically, which is why idle cash loses real value.
What inflation rate should I use?
A long-run estimate of 5–7% is reasonable for India’s consumer inflation. For specific goals like education or healthcare, use a higher rate, as those costs often rise faster than general inflation.
What is the difference between future cost and future value?
Future cost is how much an expense will cost later (it grows with inflation). Future value of today’s money is how much your current cash will be worth later (it shrinks). This tool shows both.
Why do I need to beat inflation with investments?
If your investment returns less than inflation, you lose purchasing power even though the rupee figure grows. To truly grow wealth, your post-tax return must exceed the inflation rate.
How much will ₹1 crore be worth in the future?
Less than it seems. At 6% inflation, ₹1 crore in 20 years has the purchasing power of about ₹31 lakh today. Enter your amount and horizon to see the exact real value.