Inflation Calculator
Understand how inflation erodes purchasing power over time. Calculate the future value of money or what a future amount is worth today.
Future Value
How to use the Inflation Calculator
- Enter the amount in today's money.
- Enter the expected annual inflation rate.
- Enter the number of years.
- Choose future cost or purchasing power and click Calculate.
Formula used
Worked example
₹1,00,000 with 6% inflation for 10 years
Something costing ₹1 lakh today will cost about ₹1,79,085
₹1 lakh kept as cash will buy only what ₹55,839 buys today
Why inflation matters for planning
Retirement, a child's education or a house are paid for with future money. If you plan for ₹20 lakh of college fees in 15 years without adjusting for education inflation (often 8–10%), you will fall well short. Always inflate the goal first, then work out how much to save with an SIP or lumpsum calculator.
Tips for accurate results
- India's retail (CPI) inflation has mostly been in the 4–7% range in recent years.
- Education and healthcare costs usually rise faster than general inflation.
- An investment beats inflation only if its post-tax return is higher than the inflation rate.
Frequently Asked Questions
For long-term planning in India, 6% is a common assumption; use 8–10% for education and medical goals.
Approximately the investment return minus inflation. A 7% FD with 6% inflation gives about a 1% real return before tax.
Yes, just enter the inflation rate of that country.
Content reviewed by Vinod, Easy Smart Calculator · Last updated October 2026
Inflation & Purchasing Power
Inflation reduces the purchasing power of money over time. ₹100 today won't buy the same goods in 10 years. This calculator uses the compound formula to estimate inflation's impact.
Present Value = P / (1 + r/100)^t