Inflation Calculator

Inflation Calculator: see the real cost of money over time

Inflation is the silent thief of purchasing power. A cup of coffee that cost ₹10 in 2000 costs ₹50+ today — the coffee is the same, but the rupee buys less of it. This calculator lets you project future costs, compare past prices, and understand what your money is really worth.

Two directions

Future value — “What will ₹1 lakh today cost in 20 years?” Answer at 6% inflation: ₹3.21 lakh.
Past value — “What was ₹1 lakh worth 20 years ago?” Answer at 6% inflation: ₹31,180.

The math

Future value: FV = PV × (1 + i)^n

Past value: PV = FV / (1 + i)^n

where i is the annual inflation rate and n is the number of years.

Why it matters for planning

Savings and FDs at 6% look great until you realize inflation is also 6% — you are running in place. An FD gives positive nominal returns but roughly zero real returns.

Salaries need to outpace inflation to represent real growth. A 10% annual raise with 8% inflation is only a 2% real increase in purchasing power.

Retirement corpus must account for decades of inflation. A ₹1 crore corpus today is worth only about ₹30 lakh in today’s-rupees after 20 years of 6% inflation. That’s why retirement planning works on future-value amounts, not today’s-rupees comfort numbers.

Beyond headline CPI

Headline CPI is a weighted average across a basket of goods. Your personal inflation rate depends on what you actually buy. Specific categories move much faster:

Healthcare — often 10–12% in India
Education — 8–10%
Housing / property — varies by city, often 6–8%

If these are a large share of your spending, your effective inflation rate is higher than the headline number — use 7–8% for personal planning.

Frequently asked questions

What inflation rate should I use for India?

India's headline CPI inflation has averaged 5–6% over the last decade. For personal planning, 6–7% is reasonable — it accounts for the fact that medical, education and lifestyle costs typically inflate faster than the basket CPI measures.

Why does my ₹100 become less, not more, over time?

That's exactly the point of inflation. ₹100 today buys more than ₹100 will buy ten years from now. The calculator in "future" mode shows the future cost of something priced ₹100 today; in "past" mode it shows the present-day equivalent of a past price.

Does inflation affect salaries equally?

Ideally, salaries grow at or above inflation — otherwise your real standard of living drops. In planning, it's common to compare your salary growth rate against inflation: anything below inflation is a real-terms pay cut.