Inflation Calculator
Prices rise every year. This calculator shows what something will cost in the future and how much today's money will really be worth then.
How to use it
- Enter today's cost or amount.
- Set the yearly inflation rate (6% is a common long-term figure for India).
- Choose the number of years.
How it is calculated
Future cost = today's cost x (1 + inflation)^years. Today's value of a future amount = future amount / (1 + inflation)^years.
Frequently asked questions
What will Rs 1 lakh be worth in 10 years?
At 6% inflation, something that costs Rs 1 lakh today will cost about Rs 1.79 lakh, and Rs 1 lakh will buy only what about Rs 56,000 buys now.
What is India's inflation target?
The Reserve Bank of India targets 4% consumer inflation, within a band of 2% to 6%.
Why use a higher rate for education or health?
These costs have risen faster than general prices, often 8-10% a year.
How does inflation affect my savings?
A return below inflation means your money buys less every year, even if the balance grows.