How to use the Inflation Calculator
- Choose whether you want a future cost or today's value of a future amount.
- Enter the amount, an average inflation rate and the number of years.
Formulas
- Future cost = cost today × (1 + inflation)^years
- Present value = future amount ÷ (1 + inflation)^years
Choosing an inflation rate
India's consumer price inflation has typically ranged between about 4% and 7% a year over the last decade, and the RBI targets 4% with a band of 2–6%. For long-term goals many planners use 6%; for education or healthcare goals, 8–10% is more realistic. Use the result with the savings goal calculator to plan how much to save.
Example
- Something costing ₹1,00,000 today will cost about ₹1,79,085 in 10 years at 6% inflation.
- ₹1,00,000 received 10 years from now is worth only about ₹55,839 in today's money.
Frequently asked questions
Why does this matter for investments?
A deposit earning 7% when inflation is 6% gives a real return of only about 1% a year — and less after tax. Compare returns after inflation, not before.
Is what I enter stored or sent anywhere?
No. Calculations and processing happen in your browser. Nothing you type is sent to our servers. Some tools remember your last input in this browser's local storage for convenience; you can clear it at any time.