Inflation Calculator

Inflation slowly raises prices, which means the same amount of money buys less over time. This calculator shows two sides of that: what something costing a set amount today would cost in the future, and how much today's money will be worth after inflation.

₹1,00,000
₹
6%
%
yrs
Future cost
₹1,79,085
What costs this amount today will cost then
Future value of today's money
₹55,839
Purchasing power lost
₹44,161

Year-by-year value

YearFuture costValue of today's money
1₹1,06,000₹94,340
2₹1,12,360₹89,000
3₹1,19,102₹83,962
4₹1,26,248₹79,209
5₹1,33,823₹74,726
6₹1,41,852₹70,496
7₹1,50,363₹66,506
8₹1,59,385₹62,741
9₹1,68,948₹59,190
10₹1,79,085₹55,839

How to calculate the effect of inflation

Future cost grows by the inflation rate each year, the same way compound interest grows a balance. Purchasing power is the reverse: today's amount is divided by that growth factor to show its real value in the future. Both use a constant average rate as an estimate.

Formula
Future cost = Amount × (1 + rate)^years. Purchasing power = Amount ÷ (1 + rate)^years.

Example. At 6% average inflation, something costing ₹1,00,000 today would cost about ₹1,79,085 in 10 years, and ₹1,00,000 kept as cash would be worth only about ₹55,839 in today's terms.

Why inflation matters for savings

Money left in cash or a low-interest account loses real value every year inflation runs. To preserve purchasing power, your savings need to earn at least the inflation rate, which is why long-term savers look for returns above inflation.

Frequently asked questions

How does inflation reduce the value of money?

As prices rise, each unit of currency buys fewer goods and services. So a fixed amount of cash has less real purchasing power in the future than it does today.

What inflation rate should I use?

A long-run average for your country is a reasonable estimate. Many economies sit around 2 to 6 percent, but it varies, so use a figure that reflects your own experience or official data.

What is the difference between nominal and real value?

Nominal value is the face amount of money. Real value adjusts for inflation to reflect what that money can actually buy. This calculator shows both.

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