How the Inflation Calculator Works
Enter a current amount, an assumed annual inflation rate, and the number of years to project.
Future Cost shows how much money you'd need in the future to buy what today's amount buys today.
Purchasing Power shows what today's amount will effectively be worth, in today's terms, after inflation erodes it over that period — helpful for understanding why a fixed sum feels smaller over time.
Formula Used
Both figures use the same compound growth formula, applied in opposite directions:
Future Cost = Amount × (1 + r)^n | Purchasing Power = Amount ÷ (1 + r)^n- rAnnual inflation rate (as a decimal)
- nNumber of years
Example Calculation
How ₹1,00,000 today is affected by 6% annual inflation over 10 years.
- Current Amount₹1,00,000
- Inflation Rate6% p.a.
- Number of Years10
- ResultFuture Cost ≈ ₹1,79,085, Purchasing Power ≈ ₹55,839
Important Assumptions
- This calculator assumes a constant annual inflation rate for the entire period — actual inflation fluctuates year to year and varies by category of spending (e.g. healthcare and education often inflate faster than general consumer prices).
- The inflation rate you enter is an assumption for planning purposes, not a forecast or guarantee of future inflation.
- This calculator does not account for changes in income, investment returns, or lifestyle over the projection period.