Inflation Calculator
Inflation silently reduces the real value of money over time. This calculator shows what a sum of money today will need to grow to just to maintain the same purchasing power in the future — and conversely, what that future amount is worth in today's terms.
Frequently Asked Questions
What is inflation and why does it matter?+
Inflation is the rate at which the general level of prices rises over time, reducing the purchasing power of money. If inflation is 6% per year, something that costs ₹100 today will cost ₹106 next year. Over 10 years at 6%, it costs ₹179.
What is the current inflation rate in India?+
India's Consumer Price Index (CPI) inflation has averaged 5–6% over the past decade. The RBI targets 4% inflation (with a ±2% tolerance band). For planning purposes, using 5–6% is a reasonable long-term assumption.
How does inflation affect my savings?+
If your savings earn less than the inflation rate, your real purchasing power is shrinking even as your nominal balance grows. For example, an FD earning 7% when inflation is 6% gives a real return of only ~1%. Investments that beat inflation (like equities) protect wealth better over the long run.
What is the difference between CPI and WPI?+
CPI (Consumer Price Index) measures the average change in prices of goods and services purchased by households — this is the inflation number most relevant to individuals. WPI (Wholesale Price Index) measures price changes at the wholesale/producer level. The government uses CPI for monetary policy.