Inflation Calculator - Future Value of Money
Calculate how inflation erodes your money's purchasing power over time. Plan for the future by understanding the real value of your savings.
Calculate Inflation
Amount you want to evaluate
Expected annual inflation rate
Future time period
Future Purchasing Power
₹5,58,395
Value Lost to Inflation
₹4,41,605
Current Value
₹10,00,000
Formula & Explanation
Future Value = Present Value / (1 + inflation rate)^yearsThis formula calculates the real purchasing power of money after accounting for inflation. India's average inflation rate has been around 5-6% historically.
Calculation Examples
₹10 Lakh in 10 Years
At 6% inflation
Worth only ₹5,58,395 in today's terms
Benefits
- Understand inflation impact
- Plan retirement corpus
- Set realistic goals
- Choose right investments
Use Cases
- Retirement planning
- Goal setting
- Investment selection
- Financial awareness
About Inflation Calculator
Our Inflation Calculator shows you how inflation reduces the purchasing power of your money over time. Understand how much your current savings will be worth in the future and plan your investments to beat inflation.
Frequently Asked Questions
Inflation is the rate at which the general level of prices for goods and services rises, causing purchasing power to fall. In India, CPI inflation has averaged 5-6% over the past decade.
To beat inflation, invest in assets that grow faster than inflation: equity mutual funds (12-15%), real estate, gold, or inflation-indexed bonds. FDs at 6-7% barely keep up with inflation.