Inflation Calculator
Inflation quietly erodes the value of money. ₹1 lakh today won't buy the same things 10 years from now. Enter an amount, a timeframe, and an inflation rate to see what your money will actually be worth in the future - or what a past amount would cost today.
How to use
- Pick your mode: Future Value to see what today's money is worth later, or Past Value to see what an old amount equals today.
- Enter the amount.
- Enter the inflation rate. India's average has been around 5-7% over the past decade.
- Enter the number of years and hit Calculate.
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Inflation is the rate at which the general level of prices rises over time, eroding the purchasing power of money. If inflation is 6% per year, ₹1,00,000 today will only buy what ₹94,000 buys one year from now. Over 10 years at 6% inflation, you would need ₹1,79,085 to match the purchasing power of ₹1,00,000 today.
India's inflation is measured by the Consumer Price Index (CPI), published monthly by the Ministry of Statistics. The RBI targets a CPI inflation rate of 4% (with a tolerance band of 2–6%). Long-term average CPI inflation in India has been around 6–7%. This makes inflation a key factor in retirement planning, investment returns, and salary negotiations.
Frequently Asked Questions
What is the current inflation rate in India?
India's CPI inflation fluctuates monthly. The RBI targets 4% inflation. Recent years have seen inflation ranging from 4–8%. Check the Ministry of Statistics website (mospi.gov.in) or RBI for the latest figures.
How does inflation affect my savings?
If your savings earn less than the inflation rate, you are losing purchasing power in real terms. For example, a savings account at 3.5% interest when inflation is 6% results in a real return of −2.5%. Investments in equity, real estate, or inflation-indexed bonds are better hedges against inflation.
What is the rule of 70 for inflation?
The rule of 70 estimates how long it takes for prices to double. Divide 70 by the annual inflation rate. At 6% inflation, prices double in approximately 70/6 = 11.7 years. At 4%, prices double in 17.5 years.
What investments beat inflation in India?
Historically, equity mutual funds (12–15% CAGR), real estate, gold, and Sovereign Gold Bonds have beaten India's 6–7% inflation over the long term. Fixed deposits (6–7.5%) barely keep pace. The National Savings Certificate and PPF (7–7.5%) offer modest real returns.
Disclaimer: Results are estimates for informational purposes only and do not constitute financial, tax, or investment advice. Figures may vary based on actual terms. Always consult a qualified financial advisor before making financial decisions.