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Inflation Calculator
What today's money will be worth later, and what a future cost equals in today's terms.
PlanningInputs
Results
Formula
- Future cost = Amount × (1 + inflation)^years
- Purchasing power = Amount / (1 + inflation)^years
- Loss of value = Amount − purchasing power
- Halving time ≈ 70 / inflation rate
Inflation works exactly like compound interest, but against you. Two figures matter: what something costing X today will cost later (the future cost), and what X held in cash will buy later (the purchasing power). Any savings rate below inflation guarantees a real loss even when the nominal balance rises.
Step-by-step Calculation
- 1.Inflation factor
(1 + 6%)^101.7908 - 2.Future cost
100,000 × factor₹179,085 - 3.Purchasing power
100,000 / factor₹55,839
Assumptions
- • Constant average inflation
- • General CPI basket; healthcare and education inflate faster
Money Tips
- ◆Use 6% for India and 2–3% for developed markets as long-run planning defaults.
- ◆Education and healthcare goals should be modelled at 8–10%.
Warnings
- ▲Cash and low-yield deposits lose real value every year at these rates.
References & Standards
CPI (Consumer Price Index) methodologyFisher relation
Results are planning estimates generated in your browser. Nothing you enter is uploaded or stored. Verify material decisions with your lender, adviser or chartered accountant.