Inflation Calculator

What This Inflation Calculator Does

Inflation steadily erodes the purchasing power of money - what costs a certain amount today will cost more in the future, even if nothing about the item itself changes. This calculator projects the future cost of today's amount at a chosen inflation rate over a chosen number of years.

The Formula

Future Cost = Current Amount × (1 + inflation rate)^years. This is the same compounding formula used for investment growth, applied in reverse - instead of your money growing, the cost of goods and services grows, which is functionally identical to your money's purchasing power shrinking by the same rate.

How to Use It

Enter today's amount (a cost, a goal, or any rupee figure), your expected annual inflation rate, and the number of years into the future. The calculator shows what that same amount is projected to cost after inflation, alongside a simple bar chart comparing today's cost to the future cost.

Why This Matters for Investment Planning

A long-term financial goal - retirement, a child's education, a home purchase - needs to be set in future rupees, not today's rupees, or you risk saving toward a target that will be worth far less by the time you reach it. Many people run their goal amount through this calculator first, then feed the resulting future figure into the Goal-Based SIP Calculator to find the monthly investment needed to actually get there.

Who This Is For

Anyone setting a long-term financial goal who wants to account for rising costs, or simply curious what a given amount of money today is likely to be worth, in purchasing power terms, years from now.

Quick Example

Something that costs ₹50,000 today will cost approximately ₹1,19,828 in 15 years at a 6% annual inflation rate - roughly two and a half times the current price, purely from inflation, before accounting for any change in the item itself.