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Free tool

Inflation Calculator

See how rising prices change what your money can buy. Work out a future cost, or what a future sum is worth today.

Cost in future ₹0
Change in buying power 0

This is an illustration at one steady inflation rate. Real prices rise unevenly, by different amounts for different things, and the rate you enter is an assumption, not a forecast.

How this is calculated

Prices are assumed to rise by the same percentage every year, and each year's rise builds on the last, just like compounding works for savings. Future cost = today's cost × (1 + inflation) raised to the number of years. Today's value of a future amount divides by the same factor instead.

A worked example

Illustrations at a steady inflation rate:

  • A cost of 50,000 rupees today becomes about ₹89,542 in 10 years at 6% a year.
  • A school fee of 2 lakh rupees today becomes about ₹8.35 lakh in 15 years at 10% a year.
  • A retirement pot of 1 crore rupees, 20 years from now, buys what about ₹31.2 lakh buys today at 6% a year.
  • At 4% instead of 6%, 50,000 rupees becomes about ₹74,012 in 10 years. A small difference in the rate adds up.

Set savings goals in future rupees, not today's. To see how much you would need to invest, try the SIP calculator or the retirement calculator.

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Questions people ask

What is an inflation calculator?

It shows how rising prices change the value of money over time. It can work out what something that costs a certain amount today will cost in the future, or what a sum you will receive in the future is worth in today's money. Both use the same yearly inflation rate, compounded every year.

What will 1 lakh rupees be worth in 20 years?

At an illustrative 6% inflation a year, 1 lakh rupees received 20 years from now would buy only what about ₹31,180 buys today. Put the other way, something that costs 1 lakh today would cost about ₹3.21 lakh in 20 years at the same rate.

What inflation rate should I use?

There is no single right number. Official consumer price inflation is published every month by the government's statistics office, and many people plan with a long-term average a little above recent figures to stay safe. Costs such as school fees and medical care have often risen faster than the overall index, so use a higher rate for those goals.

Why does inflation matter for my savings?

If your money earns less than inflation after tax, it loses buying power even though the rupee amount grows. That gap is your real return. A savings account or FD can earn a positive rate and still leave you poorer in real terms.

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