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Inflation calculator
What things will cost later, and what your money will be worth.
Quick answer
Enter an amount, the yearly inflation and the years. Something that costs โน1,00,000 today costs about โน1,79,085 in 10 years at 6% inflation.
Same things will cost
โน1,79,085
- Your money will buy only
- โน55,839
- Purchasing power lost
- 44.2%
- Cost
Year-by-year table
| Year | Cost of the same things |
|---|---|
| 1 | โน1,06,000 |
| 2 | โน1,12,360 |
| 3 | โน1,19,102 |
| 4 | โน1,26,248 |
| 5 | โน1,33,823 |
| 6 | โน1,41,852 |
| 7 | โน1,50,363 |
| 8 | โน1,59,385 |
| 9 | โน1,68,948 |
| 10 | โน1,79,085 |
How it works
Inflation is the yearly rise in prices. A steady 6% means prices double in about 12 years.
Money left idle loses purchasing power, which is why savings need to earn more than inflation to keep their value.
Use the future cost to plan for school fees, a wedding or retirement.
The formula
- Future cost = amount ร (1 + inflation)^years
- Purchasing power of todayโs money = amount รท (1 + inflation)^years
A worked example
โน1,00,000 at 6% inflation for 10 years: 1,00,000 ร 1.06^10 = โน1,79,085. In that time โน1,00,000 in cash buys only about โน55,839 worth of todayโs goods.
Common questions
What inflation rate should I use?
Long-run average consumer inflation in India has often been in the 4 to 7% range. Use a figure that matches your own costs, such as education or healthcare, which can rise faster.
Does it work backwards?
Yes in spirit: a price today of โน1,79,085 equals โน1,00,000 ten years ago at 6% a year.
What is real return?
Your return minus inflation, roughly. A 9% return with 6% inflation grows your buying power by about 3% a year.
Is inflation the same for everything?
No. Food, fuel, education and housing each move at their own pace. Use a rate that fits the thing you are planning for.