Inflation means the same money buys less every year. This calculator shows how much you'll need in future to match today's spending, and what a future amount is worth in today's rupees. It's essential for planning retirement, education and other long goals.
The inflation formulas
Future cost = today's cost × (1 + inflation)^yearsToday's value of a future amount = future amount ÷ (1 + inflation)^yearsExample: Monthly expenses of ₹50,000, 6% inflation, 10 years
You'll need about ₹89,500 a month in 10 years to live the same way.
Looked at the other way, ₹50,000 received in 10 years will buy only what about ₹27,900 buys today.
What inflation rate to use
India's consumer price inflation has moved between roughly 2% and 7% over the past decade. For long-term planning, 5–6% is a common, cautious assumption. Some costs rise much faster: education and healthcare often go up 8–10% a year, so use a higher rate for those goals.
Beating inflation
Savings accounts and many FDs barely keep pace with inflation once tax is taken out. Over long periods, growth investments such as equity mutual funds have historically beaten inflation, with more risk. The real return is roughly your return minus inflation. Plan goals in future rupees with the savings goal calculator.
How to use this calculator
- Enter an amount in today's rupees.
- Enter an inflation rate and number of years.
FAQs
What inflation rate should I use?
Many planners use 6% for general expenses and more for education and healthcare.
Results are estimates and aren't financial advice. For decisions about your own money, check with a qualified adviser. Spotted a mistake? Tell us.