See how inflation affects your money over time. Save or share your results easily.
Inflation is the "silent thief" of personal finance, gradually eroding the purchasing power of your hard-earned money. What costs ₹100 today will inevitably cost more in the future. To build a truly resilient financial plan, you must account for this price rise. Our Inflation Calculator helps you visualize the real-world value of your money, allowing you to plan for future expenses or understand how much today’s wealth is worth in the context of the past.
This tool operates in two distinct modes to help you navigate the impact of rising costs on your financial goals.
Mode 1: Forward Inflation (Calculate Future Value)
Use this mode to find out how much a specific lifestyle, product, or service will cost in the years to come. This is essential for goal-setting.
Mode 2: Reverse Inflation (Calculate Present Value)
Use this mode to understand the "purchasing power" of a future sum in today’s terms. This helps put large future targets into a perspective you can understand now.
The calculator uses the standard time-value of money formula, applying the logic of compound interest to rising costs.
For Forward Calculation (Future Value):
The future value (FV) is calculated using the compound interest formula:
Forward Calculation (Future Value):
$$FV = PV \times (1 + r)^n$$ For Reverse Calculation (Present Value): $$PV = \frac{FV}{(1 + r)^n}$$Where:
Karan plans to send his daughter for higher education in 15 years. The course currently costs ₹20 lakhs. To ensure he saves enough, he needs to account for education inflation, which he estimates at 10% per year.
According to the calculator, the same course that costs ₹20 lakhs today will cost approximately ₹83.54 lakhs in 15 years. This shows that Karan’s actual savings target is nearly four times the current cost, helping him plan more realistically for his daughter’s education.
Aditi is reviewing her retirement plan and sees a target of ₹3 Crores in 20 years. She wants to understand what that amount is worth in today’s terms, assuming an average inflation rate of 6% per year.
According to the calculator, a retirement corpus of ₹3 Crores after 20 years will have the purchasing power of only ₹93.54 Lakhs today. This insight helps Aditi realize that she may need to increase her savings to secure the retirement lifestyle she truly envisions.
