Inflation & Purchasing Power Calculator 2026

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.

Inflation Formula

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

• RBI — Inflation targeting framework
• MoSPI — Consumer Price Index (CPI) data
• Ministry of Commerce — Wholesale Price Index (WPI)