Inflation calculator
Future prices and the shrinking value of money.
₹1,00,000 (1 lakh)
Long-run averages: about 5–6% in India, 2–4% in most Gulf countries; higher in some countries
Future cost
₹1,79,085
at 6% inflation for 10 years
- Amount today
- ₹1,00,000
- Cost after 10 years
- ₹1,79,085
- Value of today’s money after 10 years
- ₹55,839
- Purchasing power lost
- 44.2%
- Prices double in about
- 11.9 years
Future cost = amount × (1 + inflation)^years. Real inflation changes every year; use a long-run average for planning.
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How to calculate the effect of inflation
- 1
Choose future cost or future value of money.
- 2
Enter the amount today.
- 3
Enter the yearly inflation rate and the number of years.
- 4
Read the result and the purchasing power lost.
Why money loses value
Inflation means prices rise over time, so the same amount of money buys less each year. It’s easy to ignore in the short term and hard to ignore over decades: at 6% a year, prices roughly double every 12 years. This calculator shows both sides of that: what things will cost, and what your money will be worth.
A future value of money and purchasing power calculator: a cost of living calculator based on any inflation rate.
Two questions it answers
- Future cost: how much will something that costs 1,00,000 today cost in 10 years? At 6% inflation, about 1,79,085.
- Future value of money: what will 1,00,000 kept as cash be worth in 10 years? At 6%, it buys what about 55,840 buys today, a loss of about 44% of its purchasing power.
The formula
Future cost = amount × (1 + inflation)^years, and future value = amount ÷ (1 + inflation)^years. Prices double in about 72 ÷ inflation years.
Which rate to use?
Use a long-run average rather than this year’s figure:
- India: about 5–6% over the long term.
- Most Gulf countries: about 2–4%.
- Education and healthcare usually rise faster than general prices, often 8–10% a year in India.
Using the result
Plans made in today’s prices fall short later. Feed the future cost into the savings goal calculator for big purchases, or let the retirement calculator apply inflation to your living costs. If your savings earn less than inflation, they’re shrinking in real terms; compare rates with the compound interest calculator.
Frequently asked questions
How is the future cost calculated?
Future cost = today’s price × (1 + inflation)^years. Something costing 1,00,000 today costs about 1,79,085 after 10 years of 6% inflation.
What will my money be worth in the future?
Divide by the same factor. 1,00,000 kept as cash for 10 years at 6% inflation buys what about 55,840 buys today.
What inflation rate should I use?
A long-run average for your country: around 5–6% in India and 2–4% in most Gulf countries. Education and healthcare often rise faster than average.
How quickly do prices double?
Roughly 72 ÷ inflation rate years. At 6% inflation, prices double in about 12 years.