Run a conservative scenario before relying on the headline result.
Inflation Calculator
See how future prices and purchasing power may change. Adjust the assumptions, inspect the chart and read the complete guide below.
02 Your projection
Future cost₹1.79 LUpdates instantly as you edit
Total invested / base₹1.00 L
Growth / cost₹79,085
Purchasing power₹55,839
Projection journeyHover to inspect a year
This is an educational projection based on the assumptions entered above.
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Five smart nudges
Use the result with context.
Review the assumptions after any major change in income, rates or goals.
Keep emergency money separate from long-term investments.
Account for taxes, charges and inflation when comparing options.
Use this estimate to ask better questions, not as a return promise.
Understanding Inflation in India
Editorially reviewed 12 July 2026 · Rules and assumptions can change
Compounding future prices
Future cost equals today’s cost × (1+inflation)^years. ₹1 lakh at 6% becomes about ₹1.79 lakh in ten years and ₹3.21 lakh in twenty. Inflation compounds on earlier inflation, which is why multiplying 6% by years understates long horizons.
The calculator also shows purchasing power: ₹1 lakh in ten years at 6% buys roughly what ₹55,800 buys today.
Personal inflation differs from CPI
Published CPI represents a broad basket. A family spending heavily on education, rent or healthcare can experience a different rate. Goal inflation should match the item: college fees and construction may not track headline CPI.
Location, housing tenure and lifestyle shifts alter the personal basket. Review actual expenses annually instead of assuming one rate for every goal.
Nominal versus real return
Real return is approximately (1+nominal return)/(1+inflation)-1. A 10% investment return with 6% inflation is about 3.8% real before tax, not exactly 4%. Tax and costs reduce it further.
A guaranteed nominal corpus can still fail a goal if its return trails relevant inflation. Compare every long-term projection in future rupees or real purchasing power consistently.
Scenario planning
Run base, high and low inflation. A retirement plan is sensitive to inflation both before and after retirement, while a five-year vehicle goal is less exposed. Do not assume a recent monthly print persists for decades.
If the goal fails under high inflation, increase savings or flexibility rather than simply selecting a higher investment return.
Inflation checklist
Use a current verifiable cost, correct horizon and category-relevant rate. Separate domestic and foreign-currency components.
Update the base cost with real quotes periodically and preserve consistency: never compare a future nominal target with today’s portfolio without growing both to the same date.
Official sources used for this guide
Rates, thresholds and rules can change after the review date. Check the linked authority and the provider’s current documents before acting.
Inflation calculator FAQs
Why not multiply inflation by years?
Because each year’s price increase applies to the already-inflated price.
Is CPI my personal inflation rate?
Not necessarily; your spending weights and goal categories can differ.
What is real return?
Growth in purchasing power after adjusting nominal return for inflation.
Should every goal use 6%?
No. Use a defensible rate for the specific expense and run stress cases.
How often should a future cost be updated?
Review with current quotes at least annually for important goals.