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Inflation Calculator

Calculate impact of inflation on your money

Impact of Inflation

At 6% inflation, prices double every 12 years (Rule of 72).

Future Cost (After 10 years)
1,79,085
To buy same goods/services
Today's Value1,00,000
Future Cost1,79,085
Purchasing Power Loss79,085
Real Value of ₹1,00,00055,839

Year-wise Impact

Year 11,06,000
Year 21,12,360
Year 31,19,102
Year 41,26,248
Year 51,33,823
Year 61,41,852
Year 71,50,363
Year 81,59,385
Year 91,68,948
Year 101,79,085
Tip: Your investments should return more than inflation rate to build real wealth. Aim for returns 3-4% above inflation.

About This Calculator

The Inflation Calculator Calculator helps you estimate the future value of your investments and plan your financial goals effectively. Whether you're saving for retirement, children's education, or wealth creation, understanding potential returns is essential. Our calculator shows projected maturity amount, total investment, and returns based on your inputs. It accounts for compound interest and provides year-wise growth projections. Use this tool to compare different investment scenarios and make informed decisions. Start planning your financial future today with accurate calculations at your fingertips.

How It Works

Inflation Calculator works on the principle of compound interest, where your returns generate additional returns over time. The power of compounding significantly increases your wealth in the long term. Regular investments, even small amounts, can grow substantially over extended periods. Key factors affecting your returns include the investment amount, expected rate of return, investment frequency, and time horizon. Historical data shows that equity investments typically offer 12-15% returns, while debt instruments provide 7-9% returns over the long term. However, past performance doesn't guarantee future results. Our calculator helps you set realistic expectations and plan accordingly. It's important to start investing early to maximize the benefits of compounding. The calculator uses mathematical formulas to project future values based on your inputs.

Example Calculation

Scenario: Monthly investment of ₹10,000 at 12% for 15 years

  • • Monthly Investment: ₹10,000
  • • Expected Return: 12% per annum
  • • Investment Period: 15 years

Frequently Asked Questions

What is inflation?

Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. Your money buys less over time.

What is India's average inflation rate?

India's average inflation rate has been around 5-6% in recent years. RBI targets to keep inflation around 4% with a tolerance band of +/- 2%.

How does inflation affect investments?

Your investment returns should beat inflation to grow real wealth. If inflation is 6% and your returns are 7%, your real return is only 1%.

How to protect against inflation?

Invest in assets that historically beat inflation like equity, real estate, gold. Keep minimal cash. Diversify across asset classes.