Inflation Calculator
Future cost of today’s money, or today’s value of a future amount.
I want to find
Optional
Shows your real return after inflation.
Your result
—
Enter your numbers to see the result.
This inflation calculator shows how rising prices change the value of money over time. Find out what something that costs ₹1 lakh today will cost in the future, or what a future sum is really worth in today’s rupees. You can also add an investment return to see your real return after inflation.
What is a Inflation Calculator?
Inflation is the general rise in prices over time. When inflation is 6%, something that costs ₹100 this year will cost about ₹106 next year. The same rupee buys a little less each year, which is why money kept idle loses value.
An inflation calculator helps you plan with that in mind. It answers two common questions: how much will today’s expenses cost in the future, and how much is a future amount really worth today? In India, retail inflation is measured by the Consumer Price Index (CPI), published every month by the National Statistics Office.
How does the Inflation Calculator work?
The calculator compounds the inflation rate over the years you choose. For future cost, it multiplies today’s amount by (1 + inflation)years. For today’s value, it divides the future amount by the same factor.
The real return uses the exact Fisher formula, (1 + return) ÷ (1 + inflation) − 1, rather than simply subtracting inflation from the return.
How to use the Inflation Calculator step by step
- Choose Future cost or Today’s value.
- Enter the amount.
- Enter the expected inflation rate; 5–6% is a common planning figure for India.
- Enter the number of years.
- Optionally enter an investment return to see your real return.
- Check the year-by-year table and download it if needed.
Inflation Calculator example with real numbers
Your family spends ₹1,00,000 on a yearly holiday today. You want to know the cost in 10 years if inflation averages 6%.
| Example input | Value |
|---|---|
| I want to find | Future cost |
| Amount | ₹1,00,000 |
| Inflation rate per year | 6% |
| Number of years | 10 years |
| Investment return (optional) | 8% |
| Example output | Value |
|---|---|
| Cost after 10 years | ₹1,79,085 |
| Inflation over 10 years | 79.08% |
| Purchasing power left of ₹100 | ₹55.84 |
| Real return per year | 1.89% |
| Amount invested at 8%, in today's money | ₹1,20,553 |
The inflation calculator shows the same holiday will cost about ₹1,79,085. Prices rise 79.08% over the decade, so ₹100 buys only ₹55.84 worth of today’s goods. An investment earning 8% gives you a real return of only 1.89% a year.
Key features of this Inflation Calculator
- Two modes: future cost and today’s value
- Real return after inflation using the exact formula
- Purchasing power of ₹100
- Year-by-year table for both directions
- Lakh and crore display
Who should use the Inflation Calculator?
Who is this Inflation Calculator for?
- Families planning education, marriage and retirement goals
- Investors comparing returns with inflation
- Students learning about the time value of money
- Anyone wondering why savings feel smaller over time
Practical use cases
- Estimating the cost of a college degree 15 years from now
- Checking if an FD return beats inflation
- Working out today’s value of a ₹1 crore retirement target
- Explaining to parents why keeping cash at home loses value
Key benefits
- Realistic goals: plan for future prices, not today’s.
- Honest returns: see what your investments earn after inflation.
- Simple: two modes cover most questions.
- Shareable: download the table for family discussions.
Tips for better results
- Use a higher inflation rate for education and healthcare, which have historically risen faster than general prices.
- Run your goal at two inflation rates, such as 5% and 7%, to see the range.
- Compare post-tax returns with inflation for a true picture.
- Revisit your plan each year as actual inflation becomes known.
Common mistakes to avoid
- Planning long-term goals in today’s prices.
- Subtracting inflation from returns instead of using the real return formula for large numbers.
- Using a single year’s inflation figure for a 20-year plan.
- Forgetting that tax reduces your real return further.
Limitations of this Inflation Calculator
- It uses one constant inflation rate; real inflation changes every year.
- It does not use official CPI index values for past years.
- Inflation for your own spending may differ from the national average.
Inflation Calculator vs other ways to calculate
| Method | Future cost | Today’s value | Real return |
|---|---|---|---|
| Qorico inflation calculator | Yes | Yes | Yes |
| Compound interest calculator | Yes (as growth) | No | No |
| CPI data from MoSPI | Past only | Past only | No |
| Spreadsheet | If built | If built | If built |
For past inflation, MoSPI publishes the official CPI series, and you can divide two index values to see how prices changed. For tax on property and long-held assets, the Income Tax Department notifies a separate Cost Inflation Index each year.
Privacy and data handling
This Inflation Calculator runs entirely in your browser. The numbers you type are not sent to Qorico or stored on any server, and nothing is saved after you close the page. The Copy and Download buttons create the result on your own device. If the page has analytics turned on, it may count that a calculation happened, but it does not record the values you entered.
Inflation Calculator FAQs
How does inflation reduce the value of money?
When prices rise, each rupee buys fewer goods. At 6% inflation, ₹1 lakh today will buy only about what ₹55,800 buys today after 10 years.
What inflation rate should I use for India?
Many planners use 5–6% for general expenses and 8–10% for education and healthcare. The RBI’s medium-term target for CPI inflation is 4%, within a band of 2–6%.
What will ₹1 lakh be worth after 10 years?
At 6% inflation, ₹1 lakh received in 10 years is worth about ₹55,840 in today’s money. Put another way, today’s ₹1 lakh of spending will cost about ₹1.79 lakh.
What is the cost inflation index?
The Cost Inflation Index (CII) is a number notified by the Income Tax Department each year, used to adjust the purchase price of certain assets for tax purposes.
How do I calculate inflation-adjusted returns?
Use real return = (1 + nominal return) ÷ (1 + inflation) − 1. An 8% return with 6% inflation gives a real return of about 1.89%.
Does my FD beat inflation?
Compare the FD rate after tax with inflation. A 7% FD taxed at 30% gives about 4.9% after tax, which is below 6% inflation.
Related tools
Sources and references
We checked the method and the current figures used in this Inflation Calculator against these official and primary sources:
Written and reviewed by the Qorico Team
