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Inflation calculator

Written and reviewed by Omm · Last reviewed · General information, not investment advice

Prices rise, so the same money buys less each year. Enter an amount, a yearly inflation rate and a number of years to see what it will cost to buy the same things later, and how much of your money’s buying power is lost.

Between 1 and 1000000000

%

Between 0 and 30

years

Between 1 and 60

What costs ₹1,00,000 today will cost about ₹1,79,085 in 10 years. And ₹1,00,000 then will only buy what ₹55,839 buys today.

The same things will cost

₹1,79,085

The same amount will buy what this buys today

₹55,839

Buying power lost

44.16%

How it works

Future cost = amount × (1 + inflation)^years. Buying power of the same amount = amount ÷ (1 + inflation)^years

Inflation compounds, like interest in reverse. At 6% a year, prices roughly double in 12 years. The calculator multiplies the amount by (1 + inflation) for every year to get the future cost, and divides by the same number to get what today’s amount will be worth then.

Use it to set a goal in future money. If a course costs ₹10 lakh today and fees rise 8% a year, it will cost much more when your child is ready for it. Use the future cost as the target in the goal SIP calculator.

The rate is an assumption you enter. Inflation differs for different things: education and medical costs have often risen faster than the general level of prices. Past inflation does not predict future inflation.

Example. At 6% a year, something that costs ₹1,00,000 today will cost about ₹1,79,085 in 10 years. In the same time, ₹1,00,000 will only buy what about ₹55,839 buys today, a loss of +44.16% of its buying power.

Read the guide: Fixed deposit returns after tax and inflation: what you really earn.

Frequently asked questions

How is the future cost of something calculated?

Multiply today’s cost by (1 + inflation rate) for each year. At 6% for 10 years the multiplier is 1.06 to the power 10, about 1.79.

What inflation rate should I use?

There is no single right number. Use a cautious figure and try a few. Costs such as education and healthcare can rise faster than the general price level, so use a higher rate for those goals.

Why does the buying power of my money fall?

Because prices rise while the amount stays the same. After 10 years at 6% inflation, the same rupee amount buys only about 56% of what it does today.

How do I use this for a financial goal?

Work out the goal’s cost in today’s money, use this calculator to find what it will cost in the year you need it, and then use the goal SIP calculator to find the monthly amount to save.

What will ₹1 lakh be worth in 10, 20 and 30 years?

At 6% inflation a year, ₹1,00,000 will buy what about ₹55,839 buys today after 10 years, ₹31,180 after 20 years and ₹17,411 after 30 years.

What will ₹1 crore be worth after 20 years?

At 6% inflation a year, ₹1,00,00,000 in 20 years will buy what about ₹31,18,047 buys today. Put the other way, something that costs ₹1,00,00,000 today will cost about ₹3,20,71,355 then.

How much will my monthly expenses be at retirement?

Multiply today’s expenses by (1 + inflation) for each year until you retire. Expenses of ₹50,000 a month today become about ₹1,60,357 a month in 20 years and ₹2,87,175 in 30 years at 6% inflation.

Sources

Rules, rates and definitions on this page come from these official sources. Check the current position there before you decide.

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