This Inflation Calculator shows how prices may rise over time in India. Enter the current amount, the expected inflation rate per year, and the time period in years. The tool projects the future value of the same basket of goods. It also shows how much purchasing power you may lose.
How the Inflation Calculator Works
The calculator uses compounding. It applies the inflation rate each year for the chosen period. This estimates how much money you would need in the future to buy what costs the given amount today.
Formula: Future Value = Current Amount × (1 + Inflation Rate)Years
Example Calculation
Current Amount: ₹10,000.00
Expected Inflation Rate: 3.4% per year
Time Period: 36 years
Results
Future Value: ₹33,322.64
Value Erosion: ₹23,322.64
Effective Annual Rate: 3.40%
What these numbers mean
At 3.4% yearly inflation for 36 years, you may need ₹33,322.64 to match the buying power of ₹10,000 today. The value erosion shows the extra amount required due to rising prices.
Note: This calculator provides a projection. It is not a guarantee of future inflation.
Why use this calculator
It helps you plan long term expenses. You can set better savings targets. You can also check if your investment return beats inflation.
Frequently Asked Questions (FAQs)
What is an inflation calculator?
It is a tool that estimates how much prices may rise. It shows the future value of money for a given inflation rate and time.
What inflation rate should I use?
Use a realistic rate for India based on your expectations. You can try a range to see different outcomes.
Is the result exact?
No. It is an estimate. Actual inflation can be higher or lower in any year.
What is value erosion?
It is the loss in purchasing power over time. It shows how much extra money you may need in the future to buy the same goods.
How is future value calculated?
The calculator compounds the rate every year. It multiplies the current amount by (1 + rate) for the number of years.