Inflation Calculator
Inflation is the quietest increase you will ever pay: the bill never changes format, only size. A monthly budget of ₹50,000 feels fixed today, yet at 6% inflation the same lifestyle costs far more by the time a child finishes school or a retirement begins. This calculator turns one current expense into its future cost and mirrors it with the purchasing power of a future rupee — two halves of the same story.
Enter values
Results
- Cost of the same lifestyle
- ₹1,19,827.91
- Extra paid each month
- ₹69,827.91
- Value of ₹1,00,000 in 15 years
- ₹41,726.51
How is the Inflation calculated?
Enter what a recurring expense costs you today — rent, groceries, school fees — then the average annual inflation rate and the number of years to look ahead. The calculator compounds the bill at that rate to show what the same lifestyle will cost, subtracts today's figure for the extra outgo, and discounts a fixed ₹1,00,000 back down to show what today's lakh will be worth when you get there.
Formula
Future cost = cost × (1 + i)^n. Purchasing power = amount ÷ (1 + i)^n. i is the annual inflation rate as a decimal, so 6% becomes 0.06, and n is the number of years. The pair are inverses: one compounds a bill upwards, the other deflates a rupee downwards.
Example
A family spends ₹50,000 a month today. After 15 years at 6% inflation the same lifestyle costs 50,000 × 1.06^15 = ₹1,19,827.91 — ₹69,827.91 more every month. The mirror image: ₹1,00,000 held as cash for those 15 years buys only what ₹41,726.51 buys today, losing more than half its purchasing power.
Things to remember
Plan with a rate you can defend — Indian retail inflation has usually sat between 4% and 7% across long periods — and re-run this page every few years as the target moves closer. Money parked below the inflation rate shrinks in real terms, so watch the gap between the two numbers rather than either one alone.
Frequently Asked Questions
How do I calculate future cost with inflation?
Multiply today's cost by one plus the inflation rate, raised to the number of years. A ₹50,000 monthly expense at 6% becomes 50,000 × 1.06^15 = ₹1,19,827.91 after 15 years, so the same lifestyle costs about ₹69,828 more each month by then.
What will one lakh rupees be worth in ten years?
At 6% inflation, ₹1,00,000 in 10 years buys what roughly ₹55,840 buys today: divide by 1.06^10 = 1.79085. At 8% the same lakh falls to about ₹46,320, showing how quickly a higher rate erodes cash left idle.
Is 6% a realistic inflation rate for India?
Over recent decades Indian retail inflation has usually ranged between 4% and 7%, with food and education often rising faster than the headline figure. For long-range planning many people assume 6% and then recheck it every few years against what they actually spend.
How does inflation affect my FD or SIP returns?
Subtract inflation from the return to see the real growth. An FD at 7% with 6% inflation keeps only about 1% a year of genuine gain, while a SIP averaging 12% keeps roughly 6% — and cash held at zero return loses ground every single year.
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