Inflation Calculator
Inflation is the quiet tax. Nobody sends you a bill, but every year the same money buys a little less, and over decades "a little less" compounds into most of it.
This calculator works in both directions. It tells you what something costing ₹1 lakh today will cost in twenty years, and what ₹1 lakh sitting in a drawer for twenty years will actually be worth when you take it out. The second number is the one that should change your behaviour: money kept in a savings account earning 3% while inflation runs at 6% isn't safe. It is losing 3% a year with total reliability.
How it works
- 01Future cost = Amount × (1 + inflation)^years — the same compounding that grows investments, working against you.
- 02Today's buying power = Amount ÷ (1 + inflation)^years — what a future sum is really worth in money you understand.
- 03The gap between them is why "beating inflation" is the actual minimum bar for any investment, not an ambitious target.
Frequently asked
What inflation rate should I use?+
India's long-run consumer inflation has averaged roughly 5–6%. But your personal rate depends on what you buy — education and healthcare have run closer to 8–10% for years. If you are planning school fees or medical costs, use the higher figure.
Does this mean savings accounts are pointless?+
Not pointless — just the wrong tool for long-term money. A savings account is for your emergency fund and near-term spending, where instant access matters more than returns. Money you will not need for five years should not be sitting there.
What is a real return?+
Your return minus inflation. Earning 7% while inflation runs at 6% is a 1% real return — you are barely staying still. Real return is the only figure that tells you whether you are actually getting wealthier.
How do I plan a goal that is 15 years away?+
Take today's cost, run it through this calculator to get the future cost, then use that inflated figure as your target in the goal SIP calculator. Skipping this step is the most common reason long-term plans fall short.