Inflation & Purchasing Power Calculator 2026

See what today's money will cost in the future — and what tomorrow's money is worth today.

Today's amount

Quick Presets:

1000100000000

Expected inflation rate

1%15%

Time period

Yrs

1 Yr40 Yrs

India's long-term CPI inflation has averaged ~5–6% per year. RBI's official target is 4% (±2%).

Future cost in 10 years: ₹1.79 L; That's a 79.1% cumulative price rise from today's ₹1.00 L.

Reverse view — purchasing power

₹1.00 L 10 years from now will only be worth:

Purchasing power: ₹55,839; in today's money. That's the silent erosion inflation causes when cash sits in low-yield places.

Year-by-year impact

Future cost: what today's ₹1.00 L will cost in that year. Purchasing power: what ₹1.00 L received in that year is worth in today's rupees.

Year	Future cost	Purchasing power
1	₹1.06 L	₹94,340
2	₹1.12 L	₹89,000
3	₹1.19 L	₹83,962
4	₹1.26 L	₹79,209
5	₹1.34 L	₹74,726
6	₹1.42 L	₹70,496
7	₹1.50 L	₹66,506
8	₹1.59 L	₹62,741
9	₹1.69 L	₹59,190
10	₹1.79 L	₹55,839

Inflation curve

Inflation Formula

Standard Formula

F = P × (1 + i)^n

Live Calculation (Plugging Your Values)

Today's amount (P):₹1.00 L

Inflation rate a year (i):6%

Years (n):10

Substituted Equation:

₹1.00 L × (1 + 0.0600)^10 = ₹1.00 L × 1.7908

Future cost:₹1.79 L

The reverse view divides instead: P ÷ (1 + i)^n is what the same amount received n years from now is worth in today's money — ₹55,839 here. Enter the rate as a decimal: 6% is 0.06.

About the Inflation Calculator

Inflation is the rise in the general price of goods and services over time. A ₹100 packet of biscuits today might cost ₹180 a decade from now. For long-term goals — retirement, child's education, a house — ignoring inflation is the most expensive mistake an Indian saver can make.

This calculator works in both directions: future value (what today's amount will cost later) and present value (what a future amount is worth today). Use it to size retirement corpora, set realistic goal targets, and stress-test salary growth.

How it Works

Today's amount — the rupee value you're projecting forward or backward.
Inflation rate — annual % rise in prices. Use ~6% for India as a reasonable default.
Time period — number of years.

Benefits of Planning for Inflation

Right-size your retirement corpus — most people undershoot by 30–50% by ignoring inflation.
Plan child education and home goals with realistic future costs, not today's prices.
Understand why bank FDs at 6.5% are nearly zero real return after tax + inflation.
Compare investment options on real returns, not nominal.

India inflation context

RBI targets 4% CPI inflation with a 2–6% tolerance band. Headline inflation has averaged ~5.5% over the last 10 years. For very long horizons (20+ years), assume 6%. For specific goals, education inflation is typically 8–10% and healthcare 7–9% — much higher than headline CPI.

References

How these numbers are checked →

Inflation & Purchasing Power FAQs

How does inflation reduce the future value of money?

Inflation is the rate at which general prices for goods and services rise. At 6% annual inflation, ₹100 today will have the purchasing power of only ₹41.70 in 15 years.

What is the formula for calculating future inflation-adjusted cost?

Future Cost = Present Cost × (1 + Inflation Rate)^Years. A ₹10,00,000 college degree at 10% education inflation costs ₹41,77,248 in fifteen years, which is why planning on today's price is the most common mistake in goal planning. Run the same sum at 6% general inflation and it reaches ₹23,96,558 — the gap between those two figures is entirely the inflation rate you picked, so choose it per goal rather than using one number for everything.

What inflation rate should I use for financial planning?

India's CPI inflation has mostly stayed in the 4%–6% band the RBI targets, so 5%–6% is a fair general assumption. Use 6% for household expenses and retirement, and higher for specific goals: private school and college fees and hospital bills have compounded closer to 8%–10% for years. Planning a 15-year education goal at 6% when fees rise at 10% leaves you badly short.

Why do education and healthcare costs rise faster than the CPI?

The CPI is a basket where food, fuel and housing carry most of the weight, and they have been relatively contained. Education and healthcare are service-heavy — salaries, faculty, doctors, equipment — and they are also priced by what families are willing to pay, which keeps rising with incomes. A degree costing ₹10 lakh today becomes ₹41.77 lakh in 15 years at 10%, against ₹23.97 lakh at 6%.

What is real return and how do I calculate it?

Real return is what is left after inflation, and it is a division, not a subtraction: Real = [(1 + return) / (1 + inflation)] − 1. A 12% equity return against 5.5% inflation is a real return of 6.16%, not 6.5%. Only the real return actually buys more goods, so this is the number to plan a retirement corpus with. The rough subtraction is close enough at low rates but drifts as both numbers rise.

Does a bank FD beat inflation after tax?

Usually not, at the top slab. A 7% FD taxed at 30% plus cess leaves about 4.82% in hand. Against 5.5% inflation that is a real return of roughly −0.65% — the deposit is safe in rupees but shrinking in buying power. FDs are still right for money you need within three years. For anything longer, you need an asset that can out-earn inflation after tax.

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