Inflation Calculator – Calculate Future Cost & Purchasing Power

How to Use the Inflation Calculator

1. Enter today's cost of the item, service or expense you want to project.
2. Enter an assumed annual inflation rate, or tap one of the quick-select buttons.
3. Enter the number of years you want to project forward.
4. Review the estimated future cost, the inflation impact, and the year-wise projection, which you can expand and download as a PDF.

Inflation Calculator Formula

This calculator uses the standard compound-growth formula, applied to a constant annual inflation rate:

Future Value = Present Value × (1 + Inflation Rate)^Years

Inflation Impact = Future Value − Present Value

• Present Value = the current cost you enter
• Inflation Rate = the annual rate you enter, expressed as a decimal in the formula
• Years = the projection period you choose
• Future Value = the estimated future cost shown by the calculator

This is the exact formula this calculator uses — it assumes the same inflation rate applies every year for the entire period, which is a simplification. Real-world inflation varies year to year and differs across product and expense categories.

Inflation Calculation Example

For a Current Cost of ₹1,00,000, an assumed annual inflation rate of 6%, and a 10-year period, this calculator's formula produces the following estimate:

• Estimated Future Cost: ₹1,79,085
• Estimated Inflation Impact: ₹79,085

You can reproduce this by entering the same values above — it's the calculator's default example. As with all figures on this page, 6% is an assumption used purely to illustrate the formula, not a forecast.

Common Examples (Assumed 6% Inflation)

These are illustrative examples using a constant assumed inflation rate of 6% — you can reproduce any of them, or try your own numbers, using the calculator above.

What Will ₹1 Lakh Be Worth in the Future?

Using an assumed 6% annual inflation rate, here's the estimated future cost equivalent of ₹1,00,000 today:

These figures represent the future cost equivalent of ₹1 lakh — how much money you'd need in that future year to buy what ₹1 lakh buys today, assuming 6% annual inflation. This is different from "purchasing power," which instead asks what ₹1 lakh received in the future would be worth in today's terms — see the next section for that distinction.

Inflation and Purchasing Power

Inflation generally reduces purchasing power over time: the same amount of money buys fewer goods and services as prices rise. For example, at an assumed 6% annual inflation rate, ₹1,00,000 today would have a purchasing power equivalent to only about ₹55,839 in 10 years' time — meaning you'd need ₹1,79,085 in 10 years just to buy what ₹1,00,000 buys today (the future-cost figure from the section above). Purchasing power and future cost are two sides of the same relationship, calculated in opposite directions.

Remember that this is a projection based on a constant assumed rate — actual inflation varies year to year and differs across categories of spending, so real purchasing-power loss over any specific period can be higher or lower than this estimate.

Inflation Rate in India: Context, Not a Forecast

India's headline retail (CPI) inflation is released monthly by the Ministry of Statistics and Programme Implementation (MoSPI). As of the most recently available official release referenced for this page — MoSPI's provisional data for July 2026 — headline CPI inflation was 4.45% year-on-year, within the Reserve Bank of India's medium-term target band of 2–6% (target midpoint 4%). Note that MoSPI rebased the CPI series in 2026 (new base year 2024, replacing the earlier 2012 base), and has stated the new series is not directly comparable to the old one — so older historical figures shouldn't be compared directly against recent releases.

This is historical context, not a forecast, and it will already be out of date by the time you're reading this — inflation is reported monthly and can move up or down. For the latest official figure, check the MoSPI website directly rather than relying on any number quoted here. This calculator does not pull live inflation data; it uses whatever rate you enter.

CPI vs WPI: What Is the Difference?

CPI (Consumer Price Index) measures changes in the prices consumers actually pay at the retail level for a representative basket of goods and services.

WPI (Wholesale Price Index) measures changes in prices at the wholesale or producer level, before goods reach the end consumer.

CPI is generally the more relevant figure for understanding how inflation affects an individual's day-to-day purchasing power, since it reflects retail prices. This calculator's inflation rate input is intended to represent a CPI-style, consumer-facing rate, but you can use any assumption relevant to your own planning.

Inflation and Retirement Planning

If your monthly expenses today are, say, ₹50,000, inflation means your actual future monthly expenses in retirement are likely to be higher in nominal rupee terms, even if your lifestyle doesn't change. For example, at an assumed 6% annual inflation, ₹50,000/month today would need to become about ₹1,60,357/month after 20 years just to maintain the same standard of living. You can use this calculator to estimate how a given monthly or annual expense might grow under different inflation assumptions, to get a rough sense of the retirement corpus math — this is not a substitute for a full retirement plan or personalized financial advice.

Inflation Calculator for Education Expenses

School fees, college costs and other education expenses can rise at a different pace than general CPI inflation, sometimes considerably faster. You can use this calculator to project a specific education cost forward using an assumption you consider appropriate for that category — for example, entering today's annual tuition fee and a higher assumed rate if you believe education costs are rising faster than general prices in your case.

Inflation Calculator for Medical Expenses

Healthcare costs, including insurance premiums and treatment costs, can also increase at rates that differ from general inflation. This calculator can be used as a scenario-planning tool for medical expenses — enter a current cost and an assumed rate you consider reasonable for healthcare in your context — but this page does not publish or endorse a specific "medical inflation rate," since that figure varies and would need to be sourced and dated to be reliable.

Calculate Future Household Expenses

Rent, groceries, utilities, transportation and other household purchases don't all rise at the same rate — some categories can run well above or below the general CPI figure in a given year. If you want a more tailored estimate for a specific category, use this calculator with an inflation assumption for that category rather than a single blended general figure.

Ways to Plan for Inflation

• Estimate future expenses for major goals using a reasonable inflation assumption
• Review long-term financial goals periodically as your assumptions or circumstances change
• Consider inflation when setting future budgets, not just current ones
• Compare your expected future expenses against your available or planned savings
• Recalculate your plans when your assumptions about inflation or returns change

Frequently Asked Questions (Inflation)