Inflation Calculator
See how inflation changes the future cost and purchasing power of money.
- Purchasing power today
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What is inflation?
Inflation is the steady rise in the general level of prices over time, which erodes the purchasing power of money. What one rupee buys today it will not buy in a few years, so understanding inflation is essential for any long-term financial plan.
How this inflation calculator works
Enter an amount, an expected annual inflation rate and a number of years. The calculator compounds the rate forward to show what the same basket of goods will cost in future, and discounts it backward to show how much your money's purchasing power will shrink in today's terms.
How to use the Inflation Calculator
- Enter the amount. Type the sum of money you want to test against inflation.
- Set the inflation rate. Use a realistic long-term rate, such as 5-6%.
- Choose the period. Enter the number of years to project forward.
- Read the impact. See the future cost and the eroded purchasing power instantly.
Frequently asked questions
What inflation rate should I use?
India's long-term retail inflation has averaged around 5-6%; adjust it to match your own outlook.
What is purchasing power?
It is how much your money can actually buy; as prices rise, the same amount buys fewer goods over time.
Why does the future cost rise so fast?
Inflation compounds, so the effect grows larger the further ahead you look.
Is any data saved?
No. The calculation is done entirely in your browser with nothing sent to a server.