Inflation Calculator
₹
%
Yrs
The future value of ₹1,00,000 after 10 years will be
₹1,79,085
Inflation Calculator — Overview
An Inflation Calculator is a tool that shows you the effect of inflation on the value of money over time. It helps you understand how much a certain amount of money will be worth in the future or how much a past amount would be worth today.
How is it calculated?
You provide a certain amount of money, an annual inflation rate, and a number of years. The calculator then uses the formula for future value: FV = PV * (1 + r)^n, where PV is the present value, r is the inflation rate, and n is the number of years.
Frequently Asked Questions
If the interest rate on your savings account is lower than the rate of inflation, your money is actually losing purchasing power over time. This is known as a negative 'real rate of return'. For example, if your savings earn 3% interest but inflation is 6%, your money's value decreases by 3% each year.
Historically, investments like equities (stocks and mutual funds) and real estate have provided returns that are significantly higher than the rate of inflation over the long term. These are considered growth assets that help protect and increase your wealth's purchasing power.
CPI (Consumer Price Index) measures inflation at the retail level, tracking the price changes of a basket of goods and services that households consume. WPI (Wholesale Price Index) measures inflation at the wholesale level. CPI is considered a more accurate reflection of the cost of living for the average person.
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