Inflation Calculator
What today's money will buy later, and what you would need then to match it.
Result
- Purchasing power lost
- 44.16%
- Extra amount required
- ₹79,085
- Price level multiple
- 1.79x
| Period | Value of today's amount | Amount needed to match | Power lost |
|---|---|---|---|
| Year 1 | ₹94,340 | ₹1,06,000 | 5.66% |
| Year 2 | ₹89,000 | ₹1,12,360 | 11.00% |
| Year 3 | ₹83,962 | ₹1,19,102 | 16.04% |
| Year 4 | ₹79,209 | ₹1,26,248 | 20.79% |
| Year 5 | ₹74,726 | ₹1,33,823 | 25.27% |
| Year 6 | ₹70,496 | ₹1,41,852 | 29.50% |
| Year 7 | ₹66,506 | ₹1,50,363 | 33.49% |
| Year 8 | ₹62,741 | ₹1,59,385 | 37.26% |
| Year 9 | ₹59,190 | ₹1,68,948 | 40.81% |
| Year 10 | ₹55,839 | ₹1,79,085 | 44.16% |
Inflation is assumed constant at the rate you entered; real inflation varies year to year and differs across spending baskets. This is an estimate, not advice.
Estimated from the numbers you entered — not a projection of guaranteed returns.
About this calculator
Inflation cuts both ways, so this calculator shows both directions. Looking backwards from the future, it discounts today's amount to show what it will actually buy. Looking forwards, it inflates the same amount to show the sum you would need at that time to buy exactly what you can buy today.
Formula
- Value of today's amount = A ÷ (1 + r)^n
- Amount needed later = A × (1 + r)^n
- Purchasing power lost = [ 1 − 1 ÷ (1 + r)^n ] × 100
Frequently asked questions
Which inflation rate should I assume?
Retail inflation in India has typically run in the mid single digits, but your own rate depends on what you spend on — education and healthcare have historically risen faster than the headline index.
Why do the two numbers differ?
One divides by the growth factor and the other multiplies by it. Discounting and inflating are not symmetric, so the fall in purchasing power is always smaller in percentage terms than the rise in price.
How does this affect a return figure?
A return net of inflation is the real return. Project the corpus with the SIP or lumpsum calculator, then bring the result back here to see it in today's money.