💸 Inflation Calculator
Understand the true cost of inflation. Find out what an item will cost in the future, or how much your saved cash will lose its purchasing power.
What is Inflation?
Inflation is the rate at which the general level of prices for goods and services is rising. As inflation rises, every Rupee you own buys a smaller percentage of a good or service.
Mode 1: Future Cost of Item
If you plan to buy a car that costs ₹10 Lakhs today in 5 years, inflation dictates that it will not cost ₹10 Lakhs then. If inflation averages 6%, the same car will cost ₹13.38 Lakhs. This is crucial for Goal Planning.
Formula: FV = CostToday × (1 + InflationRate)ⁿ
Mode 2: Purchasing Power (Value of Money)
If you keep ₹10 Lakhs in a locker (0% return) or an account that yields less than inflation, its purchasing power diminishes. After 10 years at 6% inflation, that ₹10 Lakhs will only be able to buy what ₹5.58 Lakhs buys today.
Formula: PurchasingPower = AmountToday / (1 + InflationRate)ⁿ