Reviewed October 2026
Why inflation matters for every goal
Inflation quietly reduces what your money can buy. India's retail (CPI) inflation has averaged roughly 5–6% a year over the long run, which means prices roughly double every 12 years.
This calculator shows two things: what something that costs a given amount today will cost in future, and what a fixed amount of money will be worth in today's terms.
Formulas
Future cost = Today's cost × (1 + inflation)^years Real value = Amount ÷ (1 + inflation)^years
Worked example
At 6% inflation, something that costs ₹1,00,000 today will cost about ₹3,20,714 in 20 years. Put the other way, ₹1,00,000 kept as cash for 20 years will only buy what ₹31,180 buys today.
Real return
Your real return is what you earn above inflation: (1 + return) ÷ (1 + inflation) − 1. A 7% FD with 6% inflation earns under 1% in real terms — and less after tax.
Frequently asked questions
What inflation rate should I use for India?
5–6% is a reasonable long-term assumption for general expenses. Education and healthcare costs have historically risen faster, often 8–10% a year.
How long does it take for prices to double?
Divide 72 by the inflation rate. At 6%, prices double in about 12 years.