What is Inflation?
The Inflation Calculator shows how rising prices erode the purchasing power of money over time. Inflation is often called the 'silent thief' — it quietly makes your money worth less every year.
India's average inflation rate has been about 5-7% over the past decade (CPI-based). At 6% inflation, prices double every 12 years. This means something that costs ₹1 Lakh today will cost ₹1.79 Lakhs in 10 years and ₹3.21 Lakhs in 20 years.
This is why keeping money in a savings account (3-4% interest) actually loses purchasing power — you're earning less than inflation. To beat inflation, you need investments that return more than the inflation rate: equity mutual funds (12-15%), PPF (7.1%), FDs (6.5-7.5%), or real estate.
Formula
Future Value = Amount × (1 + Inflation Rate)^Years Purchasing Power = Amount / (1 + Inflation Rate)^Years
Rule of 72: Years to double = 72 / Inflation Rate At 6%: prices double every 12 years At 7%: every 10.3 years
Example — ₹1,00,000 at 6% inflation: 5 years: ₹1,33,823 (need ₹1.34L for same purchasing power) 10 years: ₹1,79,085 20 years: ₹3,20,714 30 years: ₹5,74,349
Purchasing power loss: Today's ₹1L = ₹74,726 in 5 years = ₹55,839 in 10 years
How to use this Inflation Calculator?
1. Enter the current amount (today's value). 2. Enter expected inflation rate (6% is a reasonable estimate for India). 3. Enter years in the future. 4. See: what today's amount will cost in the future, and what today's money will be worth.