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Inflation Calculator

Last updated: 2026-05-04
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folder_open Investment Calculator

Inflation Calculator

Calculate Future Value & Purchasing Power

India CPI
lightbulb Reality Check: ₹1 Lakh today will NOT have the same purchasing power in 20 years. Use this inflation calculator to see how inflation silently eats away your savings and calculate the purchasing power of your money in 2026. Results update automatically on the right.

timeline Inflation Purchasing Power Calculator

Use our inflation calculator to find out how much your money's purchasing power will decline over time. Choose between calculating future value erosion or finding the present value of a future goal amount.

₹
20 Years ▼
5 Years
10 Years
20 Years
30 Years
6% (Avg India) ▼
4% (Conservative)
5%
6% (Avg India)
7%
8%
10% (High)
gps_fixed Goal Planning: If you need ₹X in the future, how much is that worth today? This helps you set realistic savings goals.
₹
20 Years ▼
5 Years
10 Years
20 Years
30 Years
6% (Avg India) ▼
4% (Conservative)
5%
6% (Avg India)
7%
8%
10% (High)

assignment Future Purchasing Power Summary

Current Value₹1,00,000
Value After 20 Years₹0
Purchasing Power Lost0%
Value Eroded₹0
Purchasing Power Over Time
Remaining Value
Value Eroded by Inflation

bar_chart Purchasing Power Over Time

history Historical Inflation in India

PeriodAverage Inflation₹1 Lakh becomes
Last 10 Years5.5%₹58,543 (in purchasing power)
Last 20 Years6.2%₹30,314 (in purchasing power)
Last 30 Years7.1%₹13,137 (in purchasing power)

trending_up How to Beat Inflation?

  • Invest in Equity: Stock market returns historically beat inflation
  • Real Estate: Property values generally appreciate with inflation
  • Gold: Traditional hedge against inflation
  • Avoid Fixed Deposits: FD returns often don't beat inflation after tax

calculate Inflation-Adjusted Returns

When planning investments, always consider real returns (returns minus inflation). If your investment gives 10% and inflation is 6%, your real return is only 4%.

Understanding Inflation and Its Impact on Your Money

Inflation is the silent wealth destroyer. It gradually reduces the purchasing power of your money, meaning the same amount buys less over time. Understanding inflation is crucial for financial planning.

How to Beat Inflation?

  • Invest in Equity: Stock market returns historically beat inflation
  • Real Estate: Property values generally appreciate with inflation
  • Gold: Traditional hedge against inflation
  • Avoid Fixed Deposits: FD returns often don't beat inflation after tax

Inflation-Adjusted Returns

When planning investments, always consider real returns (returns minus inflation). If your investment gives 10% and inflation is 6%, your real return is only 4%.

Frequently Asked Questions

Find answers to common questions about inflation calculator. Click on any question to expand the answer.

An inflation calculator helps you understand the impact of inflation on your money over time. It shows you the future value of a certain amount of money, or conversely, how much money you would need in the future to have the same purchasing power as today.

Inflation erodes the purchasing power of your money. If your savings are not growing at a rate higher than the inflation rate, you are effectively losing money in real terms. This calculator helps you visualize that erosion.

India's long-term average inflation rate (CPI) has been around 5-6%. For financial planning, it is prudent to use a slightly conservative estimate, such as 6%, to ensure your goals are adequately funded.

The calculator uses the formula: Future Value = Present Value * (1 + Inflation Rate) ^ Number of Years. This shows how the value of money changes due to the compounding effect of inflation.

Ignoring inflation is one of the biggest financial planning mistakes. A goal that costs ₹10 Lakhs today might cost over ₹32 Lakhs in 20 years at 6% inflation. Factoring in inflation ensures your financial goals are realistic and achievable.

gavel Legal Disclaimer

This calculator is for informational and educational purposes only. Investment returns are illustrative and based on assumed rates that may vary. Market-linked investments carry risk and past performance does not guarantee future returns. Interest rates on small savings schemes are reviewed quarterly by the Government of India. This tool should not be considered as financial advice. Consult a SEBI-registered financial advisor before making investment decisions.

verified Source: SEBI / Ministry of Finance, Govt. of India • Last updated: 2026-05-04

update Latest Updates & Regulatory Changes

UPDATED

trending_up Small Savings Rates Q1 2026-27

The Government of India reviews small savings scheme interest rates quarterly. PPF rate is 7.1%, Senior Citizens Savings Scheme is 8.2%, and Sukanya Samriddhi is 8.2% for Q1 FY 2026-27.

NEW

account_balance NPS Tier-I Tax Benefit Enhanced

Under the New Tax Regime, NPS employer contribution deduction under Section 80CCD(2) continues to be available. Under the Old Regime, additional ₹50,000 deduction under 80CCD(1B) is also available.

description Terms, Rules & Regulations

gavel

SEBI & RBI Regulations

Mutual fund investments are regulated by SEBI, and small savings schemes by the Ministry of Finance through RBI. Interest rates on government schemes are reviewed quarterly. Returns on market-linked instruments are not guaranteed and subject to market risks.

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Rate Assumptions

Investment calculators use assumed rates of return for illustration purposes. Actual returns on market-linked investments (mutual funds, equities) will vary. Small savings scheme rates are as per the latest quarterly notification by the Government of India.

policy

Tax on Investment Returns

Capital gains tax, dividend taxation, and interest income taxation rules apply as per the Income Tax Act, 2025. LTCG, STCG, and debt fund taxation rules have been updated. Consult a tax professional for personalized guidance on investment tax implications.

`); printWindow.document.close(); printWindow.focus(); setTimeout(() => printWindow.print(), 500); }// PDF Export Function function infExportPDF() { const data = infActiveTab === 'future' ? infLastCalculation.future : infLastCalculation.present; if (!data) { alert('Please enter values first'); return; } infPrintComputation(); }document.addEventListener('DOMContentLoaded', function() { calculateFutureValue(); calculatePresentValue(); });
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