Inflation Calculator
Understand how inflation erodes purchasing power over time. Calculate the future cost of goods and services, and plan your investments to beat inflation.
Inflation Inputs
Inflation Impact
Future Cost
₹1.79L
What ₹1.00L will cost in 10 yrs
₹1.00L
-₹79.1K
-44.2%
Total Inflation
+79.1%
To beat inflation, investments must grow faster than 6% p.a.
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All You Need to Know About Inflation Calculator
What is an Inflation Calculator?
An Inflation Calculator is a financial tool that helps you understand how inflation erodes the purchasing power of money over time. It calculates the future value of money (what things will cost) or the present value of future money (what future money is worth today).
Why it matters: Inflation is often called the "silent wealth killer" because it gradually reduces what your money can buy. Understanding inflation is crucial for retirement planning, investment goal-setting, and making informed financial decisions.
How Can RuDo's Inflation Calculator Help You?
Our Inflation Calculator helps you plan for the real impact of rising prices on your financial goals.
Key Benefits:
- Future Cost Estimation: See what today's expenses will cost in the future
- Real Returns Calculation: Understand your investment returns after accounting for inflation
- Retirement Planning: Calculate how much you'll actually need in the future
- Goal Adjustment: Adjust your financial targets to maintain purchasing power
- Historical Comparison: Understand how inflation has affected prices over time
How Does the Inflation Calculator Work?
The Inflation Calculator uses the compound growth formula to project future costs:
Formula (Future Value):
FV = PV × (1 + i)^n
Formula (Present Value):
PV = FV / (1 + i)^n
Where:
- FV = Future Value (what it will cost)
- PV = Present Value (what it costs today)
- i = Annual inflation rate
- n = Number of years
Example:
Current monthly expense: ₹50,000
Inflation rate: 6% per annum
Years: 20
Future monthly expense = ₹50,000 × (1.06)^20 = ₹1,60,357
This means you'll need ₹1.60 Lakhs per month in 20 years to maintain the same lifestyle that costs ₹50,000 today.
How to Use RuDo's Inflation Calculator?
Using our Inflation Calculator is easy:
Step 1: Enter Current Amount
Input the current cost or expense you want to project into the future.
Step 2: Set Inflation Rate
Enter the expected annual inflation rate. India's historical average is around 6%.
Step 3: Choose Time Period
Select how many years into the future you want to project.
Step 4: View Results
See the future cost and understand how much more you'll need to maintain purchasing power.
Step 5: Plan Accordingly
Use this information to adjust your investment goals and retirement planning.
Advantages of Using an Inflation Calculator
1. Reality Check
Understand the true future cost of your lifestyle and financial goals.
2. Investment Planning
Ensure your investments beat inflation to grow real wealth.
3. Retirement Accuracy
Calculate the actual corpus needed for retirement, not a nominal figure.
4. Goal Adjustment
Set realistic financial targets that account for rising costs.
5. Education Planning
Estimate future education costs for children (education inflation is often higher).
6. Healthcare Planning
Project healthcare costs which typically inflate faster than general prices.
7. Real Return Awareness
Understand why a 10% return with 6% inflation is really only 4% growth.
8. Long-Term Perspective
Appreciate the compounding effect of inflation over decades.