Inflation Calculator — See What Your Money Really Buys
Inflation silently shrinks your money every year. Enter any amount to see its real purchasing power over time — and what you need to do to stay ahead.
| Year | Future Cost | Real Value | Value Lost | % Lost |
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What is inflation and why does it matter?
Inflation is the rate at which prices rise, reducing what your money can buy. At 6% inflation, ₹1 lakh today will need to be ₹1.79 lakh in 10 years just to buy the same things. Idle money in a savings account earning 3-4% is actually losing purchasing power every year.
What is the current inflation rate in India?
India’s CPI inflation has averaged 5-7% over the last decade. Food inflation often runs higher at 7-9%. Healthcare and education can be 10-12% per year. The RBI targets 4% with a 2% tolerance band. Use 6% for general planning, higher for sector-specific costs.
How do I protect my money from inflation?
Invest in assets that historically outpace inflation: equity mutual funds (12-15% avg), real estate, gold, and inflation-indexed bonds (RBI Floating Rate Bonds). Savings accounts (3-4%) and even FDs (6-7% pre-tax) often fail to beat inflation after taxes. Start a SIP in equity funds for long-term inflation protection.
What return do I need to actually beat inflation?
At 6% inflation with 30% tax on investment returns, you need at least 8.6% gross returns just to stay even. Equity mutual funds have historically delivered 12-15% — giving a real return of 3-6% above inflation over long periods. Debt funds and FDs barely break even after tax.
Is my personal inflation different from CPI?
Yes. CPI is a weighted average. If you spend heavily on healthcare (10-12% inflation), education (8-10%), or housing in a metro, your personal inflation rate is likely higher than the national average. Use the preset chips above to model different inflation scenarios relevant to your spending.