Inflation Calculator

Multiply today's cost by (1 + inflation rate)ⁿ, where n is the number of years. ₹10,00,000 today at 6% inflation for 20 years will cost about ₹32,07,135 in the future — use the calculator above for any amount, rate or period.

Most planners use 5–6% as a long-run baseline for India, then stress-test with a higher rate (e.g. +2 points) to check the plan still works if inflation runs hotter than expected.

At 6% inflation, money loses close to 70% of its real purchasing power in 20 years, and around 44% in 10 years. Compare this against your savings account's actual interest rate — if the rate is lower than inflation, your balance is shrinking in real terms even as the number on the statement rises.

Both use the exact same exponential formula — a fixed percentage applied repeatedly, year after year. Compound interest grows your money; inflation shrinks what that money can buy. Treating inflation as 'negative compound interest' makes its long-run impact far more intuitive.

If your salary rises slower than inflation, its real value falls even as the number grows — a 3% raise during 5% inflation is a 2% real pay cut. Compare your annual raise against the inflation rate for your country, not against 0%, to judge whether you are actually getting ahead.