Inflation Calculator India
Check how annual inflation increases future living costs or erodes your money's purchasing power.
How the Inflation & Purchasing Power Formula Works
Inflation compounds annually just like interest, either increasing the future cost of an expense or discounting a future corpus back to today's purchasing power:
Future Cost = PV × (1 + i)^n | Today's Real Value = FV / (1 + i)^n Frequently Asked Questions
What inflation rate should I use for financial planning in India?
For general household expenses in India, 6% annual inflation is the standard benchmark. For higher education and medical/healthcare goals, planners typically assume 8% to 10% annual inflation.
How does inflation affect my FD or SIP maturity corpus?
If your investment grows at 7% while inflation is 6%, your real post-inflation return is roughly 1% per year. Always check the inflation-adjusted purchasing power before locking in long-term goals.
What is the difference between Future Cost and Today’s Value mode?
Future Cost tells you how much today’s ₹1 Lakh expense will cost after N years. Today’s Value tells you what a future ₹1 Crore corpus will actually buy in today’s purchasing power.