How it works
Inflation means prices rise over time, so the same money buys less. At 6% a year, prices roughly double every 12 years.
The first figure shows the future price of something that costs your amount today. The second shows how much of today’s buying power the same amount will have after the years you chose.
Use it for planning: a goal that costs ₹10 lakh today, such as a course or a wedding, will cost more by the time you need the money.
The formula
Future cost = amount × (1 + inflation) ^ years
Buying power later = amount ÷ (1 + inflation) ^ years. Inflation is written as a decimal in the formula (6% is 0.06).
A worked example
Something that costs ₹1,00,000 today will cost about ₹1,79,085 in 10 years at 6% inflation. And ₹1,00,000 kept for 10 years will buy only what ₹55,839 buys today.
Frequently asked questions
What inflation rate should I use?
Overall consumer inflation in India has typically been somewhere around 4% to 7% over long periods. Costs such as education and healthcare often rise faster. Try a few rates.
Does this predict actual prices?
No. It shows what happens if prices rise by a steady rate. Real inflation varies from year to year and from item to item.
How does this relate to my savings?
If your savings earn less than inflation, they buy less each year even though the number grows. Compare your expected return with the inflation rate.