What is the Inflation Calculator?
Inflation quietly eats your money's power. What ₹1,00,000 buys today, ₹1,79,000 will barely buy in 10 years at 6% inflation. The FinanceDeck Inflation Calculator projects the future cost of any expense and helps you plan investments that stay ahead of it.
This is essential for retirement planning, education-fund sizing, or any long-term goal. Investors who ignore inflation almost always undersave — the target that looks huge today is often just enough for a modest life 20 years later.
How does it work?
The calculator applies the compound-growth formula Future Value = Present Value × (1 + inflation)^years. It also shows purchasing power then — the same rupee amount discounted back — so you feel the erosion, not just the number.
Compare against the CAGR or SIP Calculator to see whether your investments beat inflation. Anything returning below inflation is technically shrinking your wealth in real terms, even if the number goes up.
Future Cost = Present Amount × (1 + inflation)^yearsExample
A ₹1,00,000 annual expense today, at 6% inflation, becomes ₹1,79,085 in 10 years.
In 20 years the same expense grows to ₹3,20,713 — more than 3x. That's why a ₹1 crore retirement corpus that feels comfortable today looks small three decades from now.
Benefits
- ✓Realistic goal-setting for retirement and education
- ✓Prevents chronic under-saving
- ✓Highlights the true hurdle rate for investments
- ✓Makes abstract inflation numbers concrete
- ✓Free and private — works entirely in your browser
Frequently Asked Questions
What inflation rate should I use?
India's long-run CPI averages 5–6%. Education and healthcare inflation run higher (8–10%). Pick according to your goal.
Is inflation the same for everyone?
No. Your personal inflation depends on what you consume. Lifestyle upgrades often add another 2–3% on top of CPI.
Should investments beat inflation?
Yes — otherwise your real wealth shrinks. Aim for at least 3% above inflation post-tax on your long-term portfolio.
Does it work for deflation?
Enter a negative inflation rate to model deflation — the future cost will be lower than today.
Related Calculators
Plan every goal in one place
Combine your loans, SIPs and savings inside the free FinanceDeck Planner.
Learn more in the Learning Center
Deep-dive guides that explain the concepts behind the Inflation Calculator.