Calculators / Investments & growth
Investments & growth
Inflation
Today's money buys less every year. At 6% inflation, money halves its worth in 12 years.
About the inflation calculator
The inflation calculator shows how much a sum today will be worth, or cost, in the future once rising prices are taken into account.
Why does this matter for my savings?
Because money that does not grow at least as fast as inflation loses purchasing power every year, even as the number stays the same. It is the reason a safe plan can still leave you poorer.
What inflation rate should I use?
Personal inflation, especially on health and education, often runs higher than the headline figure. Using a slightly higher rate builds a safety margin into your plan.
What does this mean in practice?
Your target corpus and your future expenses should be in future rupees, not today rupees. Planning in today money is the most common way people under-save.