Inflation Calculator

Calculate the future value of money or find what past amounts are worth today. Understand the true impact of inflation on your purchasing power.

Calculate Inflation Impact

Use India's average CPI inflation rate of ~6% or enter a custom rate for your analysis.

Calculation Type

Future value — "How much will ₹X be worth in N years?" Past value — "What was ₹X worth N years ago?"

Amount (₹) The value in today's money (or past money)

Number of Years How many years forward or backward to calculate

Inflation Rate (% per year) India avg CPI inflation: ~6% | Food inflation: ~8% | Education: ~10–12%

What is Inflation?

Inflation is the rate at which the general level of prices for goods and services rises over time, which correspondingly decreases the purchasing power of money. In India, inflation is measured by the Consumer Price Index (CPI) published by the Ministry of Statistics.

India's Inflation History

Average CPI inflation: ~6% per year over the last decade
Food inflation: ~7–8% — rises faster than headline inflation
Education inflation: ~10–12% — tuition and school fees rise sharply
Healthcare inflation: ~10–14% — medical costs are rising rapidly
Real estate: ~5–8% in most metros

Why This Matters for Investment Planning

If inflation is 6%, your savings need to grow at more than 6% just to maintain purchasing power
Fixed deposits at 6.5% barely beat inflation — your real returns are near zero
Equity investments (Nifty 50 CAGR ~12%) provide better inflation-adjusted returns
Retirement corpus planning must account for 20–30 years of inflation erosion

Inflation Formula

Future Value = Present Value × (1 + Inflation Rate)^Years

For example, a ₹50,000 car today will cost ₹89,542 in 10 years at 6% inflation. Planning with this formula ensures your savings target is realistic.