Inflation Calculator
Prices go up every year, so the same lifestyle costs more over time. Enter your monthly expenses today, the number of years and an inflation rate to see the future cost and how much today's money will really be worth.
Enter your numbers
How to use this calculator
- Enter what your household spends in a month today.
- Choose how many years ahead you want to look.
- Set an inflation rate. 6% is a common planning figure for India.
Formula
Future cost = Today's cost × (1 + r)n
r is the yearly inflation rate as a decimal (6% = 0.06) and n is the number of years. The value of today's money in the future is Today's amount ÷ (1 + r)n.
Example
If your family spends ₹40,000 a month today, at 6% inflation the same lifestyle will cost about ₹71,634 a month in 10 years. ₹1,00,000 kept idle for those 10 years will buy only what about ₹55,839 buys today.
Inflation Calculator: common questions
What is inflation?
Inflation is the rate at which prices of goods and services rise over time. When inflation is 6%, something that costs ₹100 this year costs about ₹106 next year.
What inflation rate should I use for planning?
Many planners use 6% for general household expenses in India. Education and healthcare costs often rise faster, so people use 8% to 10% for those goals.
How can I protect my savings from inflation?
Your savings need to earn more than inflation after tax. Keep short-term money safe, and for long-term goals consider investments that have historically grown faster than inflation, such as equity mutual funds, while accepting their ups and downs.
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