Estimate how rising prices may change the cost of an expense or financial goal. Enter today’s cost, an annual inflation assumption, and the number of years to compare current cost with the estimated future amount.
What this inflation calculator shows
- Future cost: the estimated amount required after the selected period.
- Cost increase: the difference between future and current cost.
- Purchasing power: what today’s entered amount may be worth in today’s rupees after the assumed inflation effect.
- Yearly projection: estimated cost after each completed year.
How the inflation estimate works
The calculator uses `Future cost = Current cost x (1 + inflation rate)^years`. A Rs. 1,00,000 expense growing at 6% annually may cost about Rs. 1,33,823 after five years.
This is a flat-rate scenario, not a forecast of India’s Consumer Price Index. Actual inflation changes over time and varies by category, location, and household. Education, healthcare, rent, food, and transport may not rise at the same rate.
Common questions
What inflation rate should I enter?
Compare more than one assumption and use information relevant to the expense you are planning. Do not treat one recent inflation reading as a guaranteed long-term rate.
Is future cost the same as investment value?
No. Future cost estimates how an expense may rise. Investment value depends on the return earned, fees, tax, and market or product risk.
Why does purchasing power fall?
When prices rise, the same amount buys fewer goods or services. The purchasing-power figure expresses that effect using the selected constant inflation assumption.
Does this use historical CPI data?
No. It uses the annual rate entered by you and does not retrieve historical or live CPI data.
More calculators
Use the salary budget calculator for current monthly cash flow, the SIP calculator for recurring investment scenarios, or the compound interest calculator to estimate growth at a stated rate.
