What is Inflation Calculator?
Inflation Calculator helps you estimate how inflation changes a cost or purchasing power over time.
The main result is future cost at entered inflation, with a breakdown of purchasing power of unchanged amount. The formula, example and assumptions below explain how to interpret it.
How to use Inflation Calculator
Use the example to get familiar with the form, then enter your own figures. Any rates in the example are illustrative. Check the field labels and units before calculating.
- Gather cost in today’s money (₹), annual inflation (%) and years ahead (years). Use values from the same situation or reporting period.
- Replace the example cost in today’s money with your own value, then complete the other fields. Check the displayed units.
- Select Calculate and read future cost at entered inflation with its result breakdown. Change one input and calculate again to compare a second scenario. Reset restores the original example.
- Enter cost in today’s money in ₹, at least 0. Decimals are accepted.
- Enter annual inflation in %, at least 0 and at most 100. Decimals are accepted.
- Enter years ahead in years, at least 0 and at most 1000. Decimals are accepted.
Inflation Calculator: a worked example
With the inputs below, the result is ₹1,79,084.77 (future cost at entered inflation). Follow the example, then replace these illustrative values with your own.
| Input or output | Example value |
|---|---|
| Cost in today’s money (₹) | ₹1,00,000 |
| Annual inflation (%) | 6 % |
| Years ahead (years) | 10 years |
| Future cost at entered inflation | ₹1,79,084.77 |
| Purchasing power of unchanged amount | ₹55,839.48 |
Understanding the Inflation result
Read future cost at entered inflation alongside purchasing power of unchanged amount. These describe different parts of the same calculation.
Displayed results use a readable number of decimal places. When checking a result by hand, keep extra precision until the last step. To compare scenarios, change one input at a time and keep the others fixed.
- Example Purchasing power of unchanged amount: ₹55,839.48
Inflation Calculator: assumptions and common mistakes
A useful estimate starts with the right inputs. Check the following assumptions and limits before applying the result to your situation.
- A projected return is an assumption. Check whether fees, tax and inflation are included before comparing products.
For wider guidance, visit SEBI Investor Education. The formula and scope of this specific tool are stated on this page.
