About inflation calculator
Inflation reduces what money can buy. This calculator shows what an amount will be worth after a number of years at a given inflation rate.
Formula
Future cost = today's cost × (1 + inflation)ⁿ. At 6% inflation, something that costs ₹1,00,000 today costs about ₹1,79,085 in 10 years.
Why it matters
Savings that earn less than inflation lose value in real terms. Plan goals such as education or retirement using inflated costs.
A worked example
A monthly household expense of ₹50,000 today will be about ₹1,60,357 after 20 years at 6 percent inflation. So a retirement plan that assumes today's cost of living will fall far short.
Beating inflation
- Savings accounts and many deposits earn close to or below inflation after tax.
- Long-term goals usually need some growth assets such as equity funds, depending on your risk comfort.
- Review your plan each year and increase investments as your income grows.
