Inflation Calculator
Inflation is the general rise in prices over time, which means the same money buys less in future. Enter an amount, an inflation rate and a number of years to estimate what it could cost later and what today’s money will be worth then — and, optionally, whether a savings rate keeps up. Future inflation is uncertain, so the results are estimates at the rate you assume.
- Free to use
- No sign-up required
- Runs in your browser
Your result
Enter your figures and select Calculate.
Future cost
–
- Today's amount, in future purchasing power–
- Cumulative price rise–
- Purchasing power lost–
- Years for prices to double–
Year-by-year table
| Year | Future cost | Today's amount is worth |
|---|
Rounded to two decimal places. Assumes the same inflation rate every year.
Please note: this site does not publish inflation data. The rate is the one you enter, applied evenly every year. Actual inflation varies from year to year, differs between countries, and differs for the things you buy. For official figures, see your national statistics office or central bank. This is general information, not financial advice.
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- Alternative inflation scenarios
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- Calculation method and key observations
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What is inflation?
Inflation is the rate at which prices rise across the economy, usually measured once a year by a consumer price index. When inflation is 6%, a basket of goods costing ₹1,00,000 this year costs about ₹1,06,000 next year. Your money has not changed in number, but it buys less — its purchasing power has fallen.
How inflation affects purchasing power
Inflation is the general rise in prices over time. It can be read in two directions, and the calculator answers both at once:
- What will this cost later? Something priced at ₹1,00,000 today will cost more in ten years if prices keep rising.
- What will this money buy later? ₹1,00,000 kept as cash will buy less in ten years — its purchasing power shrinks.
The time for prices to double is ln 2 ÷ ln(1 + i). The familiar “rule of 72” — 72 divided by the rate — is a shortcut for the same thing and is close at ordinary rates (12 years at 6%, against an exact 11.9).
Key terms
- Inflation rate — the assumed yearly rise in prices, applied at the same rate every year.
- Future cost — what something priced at your amount today is projected to cost after the period.
- Purchasing power — what your amount, kept as cash, will buy then, expressed in today’s money.
- Cumulative inflation — the total rise in prices over the whole period, which is larger than the yearly rate times the years because the rises compound.
Example: ₹1,00,000 at 6% inflation for 10 years
Assumption: prices rise at a constant 6% a year. Actual inflation varies from year to year.
The calculator opens with ₹1,00,000 at an assumed 6% a year for 10 years. 1.06 raised to the power of 10 is 1.7908477.
Prices rise 79.08% in total, and cash loses about 44.2% of what it can buy. The effect is not linear: prices rise by ₹6,000 in the first year but by more than ₹10,000 in the tenth, because each year's rise is applied to an already higher price.
Factors that affect inflation calculations
Three inputs decide the result: the starting amount, the inflation rate and the number of years. The amount works in proportion. Rate and time compound: each year’s rise is applied to prices that have already risen, so the effect grows faster than the years. The tables use ₹1,00,000 and change one input at a time; they illustrate assumed rates, not forecasts.
Inflation rate
| Inflation rate (10 years) | Future cost | Purchasing power of ₹1,00,000 |
|---|---|---|
| 3% a year | ₹1,34,391.64 | ₹74,409.39 |
| 4% a year | ₹1,48,024.43 | ₹67,556.42 |
| 6% a year | ₹1,79,084.77 | ₹55,839.48 |
| 8% a year | ₹2,15,892.50 | ₹46,319.35 |
Number of years
| Period (6% a year) | Future cost | Purchasing power of ₹1,00,000 | Cumulative inflation |
|---|---|---|---|
| 5 years | ₹1,33,822.56 | ₹74,725.82 | 33.82% |
| 10 years | ₹1,79,084.77 | ₹55,839.48 | 79.08% |
| 20 years | ₹3,20,713.55 | ₹31,180.47 | 220.71% |
| 30 years | ₹5,74,349.12 | ₹17,411.01 | 474.35% |
Does your savings rate keep up?
Enter a savings or return rate in the optional field and the calculator shows the real rate — the growth left after inflation:
With 6% inflation, money earning 7% has a real rate of about 0.94% a year; after ten years ₹1,00,000 has grown to ₹1,96,715 on paper, which buys what ₹1,09,845 buys today. Money earning 4% has a real rate of about −1.89%: it grows to ₹1,48,024 on paper, yet buys only what ₹82,656 buys today. The balance went up; its value went down.
Subtracting one rate from the other (7% − 6% = 1%) is a common shortcut and is close at low rates, but the division above is the exact version, and the gap widens as rates rise.
Choosing a rate to test
We deliberately do not pre-fill an “official” rate: published inflation figures differ by country, are revised, and describe an average basket of goods that may not match what you spend on. Two practical approaches:
- Look up the recent consumer-price inflation figure from your country's statistics office or central bank, and run the calculator at that rate and at a rate a couple of points higher.
- For a specific goal — school fees, healthcare, rent — the prices you face may rise faster or slower than the average. Test the rate that fits the cost you are planning for.
To turn a future cost into a monthly saving target, take the future cost into the savings goal calculator, which can also inflation-adjust the goal for you.
Related calculators and guides
- Saving for a future cost? The savings goal calculator can inflation-adjust the goal and work out the monthly saving.
- Checking whether your money keeps up? The compound interest calculator projects a deposit, and the investment return calculator projects regular investing after fees — compare either result with the future cost here.
- Want the background? Our guide to savings interest and real returns explains what is left of a savings rate after inflation.
Assumptions and limitations
- Future inflation is uncertain and cannot be predicted; every result here is an estimate at the rate you assume.
- One constant inflation rate for every year. Real inflation moves around, and occasionally prices fall.
- The result describes an average: individual prices can move very differently.
- The optional comparison ignores tax on interest or returns, which lowers the real rate further.
Inflation questions, answered
What is inflation?
The general rise in prices over time, usually measured as the yearly change in a consumer price index. When prices rise, each unit of money buys less.
How does inflation reduce purchasing power?
Cash keeps the same face value while prices rise, so it buys less each year. At an assumed 6% a year, ₹1,00,000 kept for 10 years would buy what ₹55,839.48 buys today.
How is future value affected by inflation?
The future cost of something is today's price × (1 + inflation)^years. At 6% a year, something costing ₹1,00,000 today is projected to cost ₹1,79,084.77 in 10 years. A savings or investment balance only holds its value if it grows at least as fast as prices.
Is future inflation predictable?
No. Inflation changes with economic conditions, policy and events, and differs between countries and between the things people buy. Treat any rate you enter as an assumption and test a range — for example, a recent official figure and a couple of points higher.
How can I use an inflation calculator?
To estimate what a future expense could cost, to see how much cash loses in real terms, or to check whether a savings rate keeps up. Enter an amount, an inflation rate and a number of years, and optionally a savings rate for the real-return comparison.
What inflation rate should I use?
There is no single right answer, which is why the calculator does not pre-set one from a data source. Your national statistics office or central bank publishes the official consumer-price figure for your country. Running the calculation at that rate and at a higher one gives a sensible range. For a specific cost such as education or healthcare, the relevant prices may rise at a different pace from the average.
What is the difference between future cost and purchasing power?
They are the same calculation read in opposite directions. Future cost tells you what something priced at your amount today is likely to cost later if prices rise at your chosen rate. Purchasing power tells you what your amount, held as cash, will be able to buy later, expressed in today's money.
What is a real rate of return?
It is the growth left after inflation. If savings earn 7% while prices rise 6%, the real rate is (1.07 ÷ 1.06) − 1, about 0.94% a year. A negative real rate means the balance grows on paper but buys less each year.
Does this calculator use historical inflation data?
No. It applies the single rate you enter to every year. It does not contain, and we do not publish, historical inflation series. For past inflation in your country, use the figures published by your national statistics office.
Is my data sent anywhere?
The calculation runs entirely in your browser using JavaScript on this page; the figures you type are not sent to our server, stored, or saved between visits. Only if you choose to open the detailed report are the amount, inflation rate, years, comparison rate and the display currency sent to our server, so that the report can be calculated there. If you buy a report, payment is handled by Razorpay and those figures are kept with the order so you can open the report again. No name, email address or phone number is asked for.