An inflation calculator shows how the purchasing power of money erodes over time due to inflation.
About this calculator
An inflation calculator shows how the purchasing power of money erodes over time due to inflation. It answers questions like: 'What will ₹1 lakh be worth in 20 years at 5% inflation?' or 'How much do I need in the future to match today's spending power?'
Inflation matters more than most people think when planning for retirement or setting savings targets. If you ignore it, your investment returns look better on paper than they actually are in real (inflation-adjusted) terms.
Common uses
- See how much today's ₹10 lakh will be worth in 15 years
- Calculate how much you need to save to maintain purchasing power
- Compare nominal vs real investment returns after inflation
- Determine inflation-adjusted retirement corpus requirements
Frequently asked questions
What is inflation and how does it affect money?
Inflation is the rate at which the general price level of goods and services rises over time, eroding the purchasing power of money. At 6% annual inflation, something that costs ₹100 today will cost about ₹179 in 10 years and ₹321 in 20 years.
What is the difference between nominal and real returns?
Nominal return is the stated return on an investment. Real return = ((1 + nominal rate) / (1 + inflation rate)) − 1, which adjusts for inflation. If an FD earns 7% and inflation is 5%, the real return is only about 1.9%, much less than the nominal rate suggests.