ToolFoxInflation Calculator
See what today's amount will cost in the future, and what a future amount is worth in today's money, after inflation.
- Future cost of the same goods
- ₹1,79,085
- Today's purchasing power of that amount, later
- ₹55,839
How it works
Inflation erodes money's purchasing power over time. Future cost = amount × (1 + inflation rate ÷ 100)^years — what the same goods will cost later. Purchasing power = amount ÷ (1 + inflation rate ÷ 100)^years — what today's amount will be worth, in today's terms, after that many years of inflation eats into it.
Example
At 6% average inflation, something that costs ₹1,00,000 today will cost about ₹1,79,084.77 in 10 years. Equivalently, ₹1,00,000 sitting idle for 10 years will only buy what ₹55,839.48 buys today — a reminder that cash left uninvested loses real value.
Frequently asked questions
What inflation rate should I use?
India's average retail inflation has hovered around 5–7% over the past decade; 6% is a commonly used planning default, and is shown here too.
Why are the two results not simple opposites?
Future cost and purchasing power use the same growth factor in opposite directions — multiplying versus dividing — so they answer two different questions about the same erosion of value.
Does this account for investment returns?
No — this tool only models inflation eroding value; to see whether an investment beats inflation, compare its projected return (from the SIP, FD or Lumpsum calculators) against the inflation rate here.
Can the rate change over the period?
This tool assumes one constant rate for simplicity; real inflation varies year to year, so treat the result as a planning estimate rather than a forecast.
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