Inflation Calculator

What is inflation?

Inflation is the rise in prices over time, which reduces the purchasing power of money. What you can buy with ₹10,000 today may cost more in 10 or 20 years. In India, the Reserve Bank of India (RBI) targets inflation around 4%; historically it has often been in the 4–7% range. Planning with an assumed inflation rate helps you set realistic future targets—for example, how much you will need for retirement or for a goal in future rupees.

The calculator shows how much future amount is needed to have the same purchasing power as a sum today at a given inflation rate. So if you need ₹10 lakh today to cover an expense, you might need ₹32 lakh in 20 years at 6% inflation. Use it for retirement corpus planning, goal setting, and to understand why your investment returns must beat inflation to grow wealth in real terms.

Example: ₹10 Lakh today, 6% inflation, 20 years

If ₹10 lakh today represents the purchasing power you need, at 6% annual inflation you would need approximately ₹32 lakh in 20 years to have the same purchasing power. So inflation roughly triples the number of rupees you need over two decades. Use the calculator above with your amount, assumed inflation rate (e.g. 5% or 6%), and years to get the future amount. Use this when setting retirement or other long-term goals so your target is in realistic future rupees.

Benefits of Using This Calculator

An inflation calculator shows how much future money you need to match today’s purchasing power, which is essential for retirement and long-term goal planning. It helps you set realistic targets (e.g. corpus or annual expense in future rupees) so you do not underestimate how much to save.

It also reinforces why your investment returns must beat inflation to grow wealth in real terms—if inflation is 6% and your savings earn 5%, you are effectively losing purchasing power. Use it together with a retirement or SIP calculator to set a target and then work out how much to invest.

How to Use This Calculator

Enter the amount in today’s rupees (e.g. current annual expense or a target sum), the assumed annual inflation rate (e.g. 5% or 6%—RBI targets around 4%; use your assumption for planning), and the number of years. The calculator shows the future amount needed to have the same purchasing power.

Use it to set retirement or goal targets in future rupees, and to compare with your expected investment returns. If your return is lower than inflation, your real wealth may not grow. Combine with our Retirement Corpus or SIP calculator to work out how much to save each month to reach that future amount.

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