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Finance & Loan Calculators

Inflation Calculator

See what something will cost in future at a given inflation rate, or how much buying power your money loses over the years.

Enter an amount, an inflation rate and the number of years.

Official inflation is an average - education and health costs often rise faster, so plan those goals with a higher rate.

What Does the Inflation Calculator Show?

Inflation is the rise in prices over time. It means the same money buys less every year. This calculator answers two questions: what will something cost in the future, and how much will today's money be worth then.

How to Use It

  1. Choose the question you want answered.
  2. Enter the amount, the yearly inflation rate and the number of years.
  3. Read the result and the year-by-year table.

Example

A goal that costs ₹15 lakh today - say, a college course - will cost about ₹41,38,547 in 15 years if prices rise 7% a year, an increase of 176%. Put the other way, ₹15 lakh kept as cash for 15 years will only buy what about ₹5.4 lakh buys today. At 7%, prices double roughly every 10 years.

Which Inflation Rate to Use?

India's consumer price inflation has averaged around 5% to 6% over the past decade, but some costs rise faster: education and healthcare often go up by 8% to 10% a year. Use a higher rate for those goals, and try a few rates to see the range.

The Formula

Future cost = today's cost × (1 + inflation)years. Future value of money = today's amount ÷ (1 + inflation)years.

Limitations

Inflation changes from year to year; the calculator uses one steady rate. It does not look up historical inflation data. To see how investments can beat inflation, use the SIP Calculator; to plan for retirement costs, use the Retirement Calculator.

Frequently Asked Questions

Future cost = today's cost × (1 + inflation rate)^years. At 6% a year, something costing ₹1,00,000 today costs about ₹1,79,085 in 10 years.

Around 5% to 6% for general living costs in India, and higher - 8% to 10% - for education and healthcare goals, which usually rise faster.

Divide the amount by (1 + inflation)^years. At 7% a year, ₹15 lakh kept as cash for 15 years buys only what about ₹5.4 lakh buys today.

Divide 72 by the inflation rate for a quick estimate. At 6% prices double in about 12 years; at 7% in about 10.
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