How to use the inflation calculator
- Choose what you want to know: what something will cost in the future, or what your money will be worth in today’s terms.
- Enter the amount, the yearly inflation rate and the number of years.
Inflation formulas
\text{Future cost} = \text{Amount} \times (1 + i)^{n}\text{Value in today’s money} = \dfrac{\text{Amount}}{(1 + i)^{n}}
Example: 1,000 at 6% for 10 years
What costs 1,000 today will cost 1,790.85 in 10 years, and 1,000 then will be worth only 558.39 in today’s money.
What inflation rate should I use?
- India: the RBI targets 4% consumer price inflation (within 2–6%); 5–6% is a common planning figure, and education and health costs often rise faster.
- US, UK, Eurozone: central banks target 2%; 2.5–3% is a common long-term planning figure.
Plan for rising costs with the retirement calculator, or see how investments beat inflation with the lumpsum calculator.
Frequently asked questions
What will ₹1 lakh be worth in 10 years?
At 6% inflation, ₹1 lakh in 10 years buys what about ₹55,839 buys today.
How long does it take for prices to double?
Roughly 72 divided by the inflation rate: 12 years at 6%, 24 years at 3%.
How does inflation affect my savings?
Money that earns less than inflation loses buying power. A savings account paying 3% when inflation is 6% loses about 3% of its value every year.
Why does the calculator use the same rate every year?
Real inflation changes from year to year. A steady average rate is the usual way to plan, but the actual result will differ.