What is Inflation Calculator?
An Inflation Calculator shows how inflation erodes your money's purchasing power over time. See what ₹1 lakh today will cost in 10, 20, or 30 years with India's average 6% inflation rate. Plan investments, salary growth, and retirement corpus considering inflation impact. If you don't beat inflation with returns, you lose money! Calculate future costs of education, healthcare, weddings, and know how much to invest to maintain your lifestyle. Inflation is the silent wealth killer - plan accordingly!
Formula
Future Cost = Present Value × (1 + Inflation Rate)^Years
Real Returns = Nominal Returns - Inflation
Example: ₹1L today at 6% inflation
After 10 years = ₹1,79,085
After 20 years = ₹3,20,714
After 30 years = ₹5,74,349
Benefits of Using Inflation Calculator
Future Cost Calculation – Know what things will cost in future
Real Returns – See if your investments beat inflation
Purchasing Power – Understand money's decreasing value
Retirement Planning – Account for inflation in corpus calculation
Salary Growth – Check if salary increase beats inflation
Free & Eye-Opening – Understand hidden wealth erosion
Pro Tip: ₹1 lakh in 1990 = ₹12-15 lakhs today (35 years, 8% inflation). Your ₹1 Cr retirement corpus in 30 years will have purchasing power of just ₹17-20L today! Invest to beat inflation: FD at 7% - 6% inflation = 1% real return (wealth barely grows)!
Frequently Asked Questions
CPI Inflation (2025): 5-6% average. Historical (1990-2025): 6-7%. Food inflation: 7-9%. Housing: 4-5%. Education/Healthcare: 10-12%! RBI target: 4% (+/- 2%). For planning, assume 6% average inflation is realistic.
At 6% inflation: ₹1L today = ₹3,20,714 in 20 years. But purchasing power stays same! Things costing ₹1L today will cost ₹3.2L then. Your ₹1L will buy 1/3rd of what it buys today. Money loses value silently!
Barely! FD: 6-7% returns. Tax @ 30% slab = 4.2-4.9% post-tax. Inflation: 6%. Real return = -1 to -2% (LOSING purchasing power!). FDs are safe but don't create wealth. Equity at 12% - 6% inflation = 6% real wealth growth!
Invest in inflation-beating assets: Equity MFs (12-15%), Real estate (8-10%), Gold (8%), PPF (7.1%). Avoid: Savings account (3%), FDs (7% - tax = 5%). Need 8%+ returns to beat 6% inflation after tax!
Real Return = Nominal Return - Inflation. FD at 7% - 6% inflation = 1% real. Equity at 12% - 6% inflation = 6% real. If investment doesn't beat inflation, you're getting poorer! Always calculate real returns for true picture.
Education inflation: 10-12% annually! Engineering fees in 2000: ₹50K/year. 2025: ₹2-5L/year. For child's education in 15 years: Today's ₹20L = ₹80L-1Cr. Plan early, invest in equity for long-term education goals!