A constant annual inflation rate. Real inflation varies year to year and by what you actually buy.
What ₹1,00,000 will cost
₹1,79,085
- What ₹1,00,000 will be worth
- ₹55,839
- Purchasing power lost
- ₹44,161
In today's purchasing power
Year by year
Two questions, one formula
Future cost = today's cost × (1 + i)^t. Future value of today's money = today's money ÷ (1 + i)^t. They are the same relationship read in opposite directions, and both are shown because people mean both when they ask about inflation.
At 6% a year, prices roughly double every twelve years. A ₹40,000-a-month household budget today needs about ₹72,000 a month in ten years to buy the same things.
Why this belongs next to every other calculator here
Every future figure on this site — SIP maturity, FD maturity, PPF balance — is in future rupees, and future rupees are smaller. A ₹1 crore corpus in 25 years at 6% inflation has the purchasing power of about ₹23 lakh today.
That is not an argument against saving; it is an argument against celebrating the nominal number. The useful comparison is always the return minus inflation, and a guaranteed 7% deposit against 6% inflation is earning about 1% in the only terms that matter.
Common questions
India's Consumer Price Index inflation has mostly run between 4% and 7% in recent years, and the Reserve Bank's mandated target is 4% with a band of plus or minus two points. Six per cent is a reasonable planning default. Your personal rate differs — education and healthcare have historically inflated much faster than the headline index.
Related calculators
SIP
Put in what you invest each month and the return you expect, and see what the SIP is worth at the end — split into the money you actually paid in and the growth on top.
Lumpsum
One amount, invested once, left to compound. See what it becomes and how much of that is growth rather than your own money.
PPF
A yearly contribution to a Public Provident Fund account, compounded annually for the full term. See what the account is worth at maturity.
CAGR
The single annual rate that would have taken you from where you started to where you ended. The fairest one-number summary of an investment's performance.