What is Inflation?
Inflation is the general rise in prices over time. In India it has averaged 5–6% over the long run. Even moderate inflation compounds: at 6%, prices double roughly every 12 years. This means ₹1 lakh today will buy far less in 15–20 years — a vital reality for retirement and goal planning.
Formula
Future value of a cost under constant inflation:
Future Cost = Present Value × (1 + inflation)^years Purchasing power of today's ₹1 in the future: Future Value of ₹1 = 1 / (1 + inflation)^years Example: at 6% over 15 years, prices rise × 2.40 and ₹1 today is worth only ₹0.42.
How to use this calculator
Enter today's amount or cost, an expected inflation rate (5–6% is realistic for India), and the number of years. The calculator shows what that amount will cost in the future and how much purchasing power today's money loses.