Inflation quietly reduces what your money can buy over time, which is a critical factor to account for in any long-term financial goal, whether it’s a child’s education, a retirement corpus, or a big purchase you’re planning for years from now.
Enter a current amount, an expected annual inflation rate, and a time period to see what that expense will cost in the future, and conversely, what a future rupee amount is worth in today’s terms.
Inflation Calculator
See how inflation erodes purchasing power, or what a future expense will cost.
Uses a constant assumed inflation rate; actual inflation varies year to year and differs by expense category (education and healthcare inflation, for instance, often run higher than general CPI inflation).
How this calculator works
Future cost is calculated as Current Amount × (1 + inflation rate)^years, showing what today’s expense will cost after the chosen period. The reverse calculation, dividing by the same growth factor, shows the present-day purchasing power equivalent of that same rupee amount, which is useful for understanding how much a future goal is really worth in today’s money.
Why inflation assumptions matter for goal planning
Small differences in the assumed inflation rate compound into large differences over long periods — a goal costing ₹10 lakh today can cost anywhere from ₹18 lakh to ₹32 lakh in 20 years depending on whether you assume 3% or 6% inflation. Using a realistic, category-specific inflation rate (education and healthcare costs in India have historically risen faster than general inflation) gives a more reliable target for goal-based investing.
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Frequently asked questions
What inflation rate should I use for financial planning?
India’s general CPI inflation has typically run in the 4-7% range in recent years, but category-specific inflation — especially education and healthcare — has often been higher, so many planners use a higher rate for those specific goals.
How is this different from a compound interest calculator?
The maths is the same growth formula, but inflation calculators are framed around the eroding effect on purchasing power, helping you size future goals in today’s money rather than projecting investment growth.
Should I use pre-tax or post-tax returns when comparing to inflation?
Compare inflation against your post-tax investment returns to understand your real, inflation-adjusted growth — pre-tax comparisons can overstate how much your money is actually growing in real terms.