Inflation Calculator: What Your Money Will Be Worth

Inflation quietly erodes your money’s value. This calculator shows what today’s amount will be worth — or cost — in future.

What is it?

Inflation is the rise in prices over time, which reduces purchasing power. ₹100 today buys less in ten years.

How is it calculated?

Future value = P × (1 + inflation)ⁿ for future cost, or present value divides by the same factor for today’s worth.

Example

₹1 lakh today, at 6% inflation, will have the buying power of only about ₹55,840 in 10 years.

Key things to know

• Investments must beat inflation to grow real wealth.
• Plan goals in future (inflated) rupees, not today’s.
• Equity has historically outpaced inflation long-term.
• FDs barely beating inflation can lose value after tax.

What to do next

Plan investments that comfortably beat inflation over time.

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Frequently asked questions

Why does inflation matter for goals?
Because future costs are higher than today’s prices.

What inflation rate should I use?
A long-term assumption around 5-6% for India.

How do I protect against it?
Hold growth assets that outpace inflation.

Disclaimer: This article is for general information only and is not financial or tax advice. Consult a qualified advisor before making investment or tax decisions.