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Investments & growth
Inflation Calculator India
See what something will cost in the future and what your money will be worth: put in an amount, an inflation rate and the years. It answers two questions every plan depends on: how much will my expenses grow, and how much buying power does idle money lose.
At 6% inflation, prices double about every 12 years. ₹1 lakh left idle for 20 years buys what ₹31,180 buys today, and a ₹50,000 month of expenses becomes about ₹1.6 lakh. Inflation is the tax nobody votes on.
Open the detailed calculator with sliders and the full breakdown
About the inflation calculator
Inflation is the rise in prices over time, which means each rupee buys a little less every year. This calculator does two things: it grows today's cost forward to show what the same thing will cost later, and it shrinks a future amount back to show what it is worth in today's money. Both use compounding, which is why the effect is so much bigger over long periods.
| Years from now | Same spending will cost | ₹1 lakh idle will buy |
|---|---|---|
| 5 years | ₹1,33,823 | ₹74,726 |
| 10 years | ₹1,79,085 | ₹55,839 |
| 15 years | ₹2,39,656 | ₹41,727 |
| 20 years | ₹3,20,714 | ₹31,180 |
| 25 years | ₹4,29,187 | ₹23,300 |
| 30 years | ₹5,74,349 | ₹17,411 |
The last column is money kept as cash or in a savings account that earns nothing after tax. Over a 30-year retirement, it loses more than four-fifths of its buying power.
What will ₹1 lakh be worth in 20 years?
At 6% inflation, ₹1 lakh held for 20 years will buy only what ₹31,180 buys today, a loss of about 69% of its buying power. Put the other way, something that costs ₹1 lakh today will cost about ₹3,20,714. Change the amount, rate or years above.
How is it calculated?
Future cost = today's cost × (1 + inflation)years. Today's value of a future amount = that amount ÷ (1 + inflation)years. At 6% for 20 years, (1.06)20 is about 3.21, so prices roughly triple and money's buying power falls to about a third. The calculator assumes one steady rate; real inflation moves up and down from year to year.
What inflation rate should I use?
For long-term plans, 6% is a sensible, slightly cautious choice. The RBI's target is 4% retail (CPI) inflation, with an allowed band of 2% to 6%, and the government has kept that target in place until 2031. Actual inflation has moved above and below that band at times, so planning at 6% gives you a margin of safety. For things that tend to rise faster, like school fees and hospital bills, many planners use a higher rate.
| Inflation | Will cost | ₹1 lakh will buy |
|---|---|---|
| 4% | ₹2,19,112 | ₹45,639 |
| 5% | ₹2,65,330 | ₹37,689 |
| 6% | ₹3,20,714 | ₹31,180 |
| 7% | ₹3,86,968 | ₹25,842 |
| 8% | ₹4,66,096 | ₹21,455 |
Two percentage points of inflation change the 20-year cost by lakhs. Test your plan at a rate higher than you expect.
Why do my own costs rise faster than the official rate?
Because the official figure averages a basket of goods, and your basket is different. A family in its forties spends more on education, healthcare and help at home, which often rise faster than food or clothing. Your lifestyle also grows as your income does, so your spending rises even when prices do not. Your personal inflation rate is the one that matters for your plan.
How much will I need each month when I retire?
Inflate today's expenses to your retirement year. ₹50,000 a month today becomes about ₹1.2 lakh in 15 years, ₹1.6 lakh in 20, and ₹2.15 lakh in 25 at 6%. That monthly figure, not today's, is what your retirement money has to pay, and it keeps rising after you retire. The retirement planner turns it into the corpus you need.
Does my FD or savings account beat inflation?
Usually not after tax. A 7% FD compounded quarterly works out to about 7.2% a year; at a 30% tax slab you keep about 5%, below 6% inflation, so the real return is slightly negative. A savings account paying less than that falls further behind. These are the right places for safety and for money you need soon, not for long-term growth. See the FD calculator for your own figures.
How do I beat inflation?
For money you will not need for many years, own assets that can grow faster than prices, such as diversified equity through a SIP, and raise the SIP each year as your income rises. Set every goal in today's money first, then inflate it, which the goal planner does for you. Keep short-term money safe; beating inflation is a job for long-term money only.
How quickly do prices double?
Divide 72 by the inflation rate. At 6%, prices double in about 12 years; at 4%, about 18; at 8%, about 9. A child born today will face prices roughly four times higher by the time they turn 24, if inflation averages 6%.
What is the difference between real and nominal return?
Nominal return is what your investment statement shows. Real return is what is left after inflation, the growth in what your money can actually buy. Real return = (1 + nominal return) ÷ (1 + inflation) − 1. A 12% return with 6% inflation is a real return of about 5.7%, not 6%. Plan with real returns.
Does inflation help anyone?
Borrowers with a fixed EMI. A loan's EMI stays the same while your income and prices rise, so each EMI takes a smaller share of your pay over time. At 6% inflation, the last EMI of a 20-year loan feels like about a third of the first. It softens the cost of a long loan; it does not make the interest disappear. The EMI calculator shows the full cost.