Inflation Calculator
Finance & InvestmentWhat today's money will cost later, and what tomorrow's is worth now.
Runs entirely in your browser — nothing is uploaded
Features
- Both directions — future cost and present value.
- Year-by-year table of cost and purchasing power.
- The return needed just to break even against inflation.
- Runs entirely in your browser — nothing you enter is uploaded.
How to use the Inflation Calculator
- 1Enter an amount and the inflation rate you want to assume.
- 2Choose whether you are asking about future cost or today's value.
- 3Check the break-even return — the minimum your savings must earn.
Frequently asked questions
How does inflation reduce the value of savings?
Prices rise while the balance does not, so the same money buys less. At 6% inflation, ₹1,00,000 kept in cash buys what ₹55,800 buys today after ten years. The balance never fell — its purchasing power did.
What inflation rate should I assume?
India's CPI inflation has averaged roughly 5–6% over the past decade, and the RBI targets 4% with a 2% band either side. Personal inflation is often higher than the headline figure, because education and healthcare rise faster than the basket average.
What is a real return?
Your return minus inflation. An FD paying 7% against 6% inflation is a real return of about 0.9% — before tax. After tax at 30% the real return is negative, which is why "safe" savings can still lose you money.
How do I protect savings from inflation?
Hold assets that grow with or faster than prices — equity over long periods, and property to a degree. For money you need soon, accept that preservation rather than growth is the goal, and keep it liquid instead of chasing yield.