Inflation Calculator India – Calculate Future Cost
See how inflation affects your money. Calculate the future cost of goods, education, or lifestyle based on current prices and inflation rates.
This Inflation Calculator for India helps you estimate how the cost of living increases over time due to inflation. Use it to plan future expenses like education, retirement, lifestyle costs, or major purchases by understanding how inflation reduces your purchasing power. To see how investments can beat inflation, try our SIP Calculator.
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Inflation Formula Explained (With Example)
- FV: Future Value (Future Cost)
- PV: Present Value (Current Cost)
- r: Annual Inflation Rate (%)
- n: Number of Years
This compound interest formula calculates how prices grow exponentially over time. Check our Deflation Formula guide for detailed explaination.
Inflation Impact Examples in India
See how a 6% inflation rate increases costs over decades.
| Item | Cost Today | In 10 Years | In 20 Years | Total Increase |
|---|---|---|---|---|
| Monthly Expenses | ₹50,000 | ₹89,542 | ₹1,60,357 | + ₹1,10,357 |
| New Car | ₹10,00,000 | ₹17,90,847 | ₹32,07,135 | + ₹22,07,135 |
| Higher Education | ₹20,00,000 | ₹35,81,695 | ₹64,14,270 | + ₹44,14,270 |
Inflation Calculator FAQs
Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. In India, it is commonly measured by the CPI (Consumer Price Index) published by the Ministry of Statistics and Programme Implementation (MOSPI).
Inflation erodes the value of money. If your savings account earns 3% interest but inflation is 6%, your ‘real’ return is negative (-3%), meaning you can buy less in the future than you can today. Learn why rising prices silently reduce your purchasing power in our guide on why inflation is your biggest enemy.
For long-term financial planning in India, financial advisors often recommend assuming an average inflation rate of 6% to 7% for general expenses, and 10% to 12% for specific goals like higher education or healthcare.
To beat inflation, you must invest in assets that have historically generated returns higher than the inflation rate, such as Equity Mutual Funds (SIPs), Gold, or Real Estate, rather than keeping money idle in savings accounts.
The Rule of 72 estimates how long it takes for prices to double. Divide 72 by the inflation rate. For example, at 6% inflation, prices will double in roughly 12 years (72 / 6 = 12).