Worked example
Example with the default numbers — change them above.
What do you want to find?: Future cost of something I buy today · Amount: ₹1,00,000 · Inflation rate (a year): 6% · Number of years: 10 yrs
Something that costs ₹1 L today will cost about ₹1.79 L in 10 years at 6% inflation, which is ₹79,085 more.
| Future cost | ₹1.79 L · in 10 years |
|---|---|
| Extra you will pay | ₹79,085 · 79.1% higher than today |
| What today's ₹1 L will buy then | ₹55,839 · measured in today's prices |
| Prices double in | 11.9 years · at 6% a year |
How the Inflation Calculator works
- Choose whether you want the future cost of something priced today, or the value in today's money of an amount you will receive later.
- Enter the amount, the yearly inflation rate and the number of years.
- For future cost, the amount is multiplied by (1 + inflation) once for every year. For today's value, it is divided by the same factor.
- The calculator shows the rise in rupees and in percent, how much of the amount's buying power is lost, and the year-by-year path.
- It also shows how long prices take to double at your rate.
Inflation maths
Future cost = Amount today × (1 + i) ^ t
Worth today = Future amount ÷ (1 + i) ^ t
i = yearly inflation rate as a decimal (6% is 0.06)
t = number of yearsAssumptions and limits
- Inflation is one steady yearly rate. Real inflation moves up and down and differs by what you buy.
- The rate is your input. Six percent is a cautious long-term planning figure at the top of RBI's 2–6% target band, not a forecast or an official statistic.
- The calculator works on a single amount. It does not model salary growth or how your income may keep pace.
- Values are in rupees and years; taxes and interest are not included.
Frequently asked questions
How do I calculate the future cost of something with inflation?
Multiply today's price by (1 + inflation rate) once for every year: Future cost = Price × (1 + i)^t. At 6% inflation, something that costs ₹1,00,000 today will cost about ₹1.79 lakh in 10 years. Enter your own amount, rate and years above to see the cost and the year-by-year rise.
What inflation rate should I use?
There is no single right answer. India's official measure is MoSPI's consumer price index (base year 2024 since January 2026). RBI aims for 4% within a band of 2% to 6%, and inflation has averaged a little under 5% since 2016, but school fees, medicine and rent can rise faster. 6% is a cautious middle choice, not a forecast. Check the latest CPI release on mospi.gov.in.
What does the real value of money mean?
Real value is what an amount can buy after prices have risen. ₹1,00,000 received in 10 years at 6% inflation has the buying power of only about ₹55,800 today. The face amount stays the same, but its real value falls. Planning in today's money keeps goals honest.
How does inflation affect my savings and FD returns?
Your real return is roughly your interest rate minus inflation. A deposit earning 7% before tax while prices rise 6% grows your buying power by under 1% a year, and by less after tax. If inflation is higher than the rate you earn, your money loses buying power even though the balance grows.
How long does it take for prices to double?
Divide 72 by the inflation rate for a quick estimate. At 6% prices double in about 12 years, and at 4% in about 18 years. This calculator works out the exact figure from your rate. It also means an expense of ₹50,000 a month today would need about ₹1 lakh a month after the doubling period.
Sources
Logic and rates last verified on .
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