📈 Inflation Calculator 2026
See how inflation erodes your money's value over time. Calculate future value, purchasing power, and total inflation impact. Essential for retirement planning, investment decisions, and understanding cost of living.
Today's Value
₹1,00,000
After 10 Years
₹1,79,085
Purchasing Power
55.8%
Inflation Details
India's average inflation: 6% (last 20 years)
Calculator shows today's amount needed
Future Value
₹ 1,79,085
after 10 years
Purchasing Power
55.8%
of original value
Total Inflation
79.1%
price increase
Value Lost
₹ 79,085
in purchasing power
Doubling Time
11.9 years
at current rate
Real World Examples
Year-by-Year Value Erosion
| Year | Future Value | Purchasing Power | Loss | Cumulative Inflation |
|---|
Historical Inflation in India
2000-2005
4.5%
2005-2010
6.8%
2010-2015
8.2%
2015-2020
5.1%
2020-2026
5.8%
Source: RBI, World Bank (approx averages)
📊 What is Inflation?
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. Simply put, what you can buy for ₹100 today will cost more in the future. In India, average inflation has been around 6% over the last two decades, meaning prices double approximately every 12 years.
Impact of Inflation
- Purchasing Power: Money loses value over time
- Cost of Living: Everyday expenses increase
- Savings: Fixed deposits may give negative real returns
- Investments: Need to earn more than inflation
Inflation Hedge
- Equity: Historically beats inflation (12-15% returns)
- Real Estate: Property values rise with inflation
- Gold: Traditional hedge against inflation
- Cash/FD: Usually lose to inflation post-tax
❓ Inflation FAQs
What is a normal inflation rate?
In India, RBI targets 4% inflation (with 2-6% range). Historically, India has averaged 6-7% inflation. Developed countries like US target 2%. For financial planning in India, using 6% inflation is realistic.
How does inflation affect retirement planning?
Inflation is retirement's biggest enemy. If you need ₹50,000/month today, at 6% inflation you'll need ₹1.6 lakhs/month after 20 years, and ₹2.9 lakhs/month after 30 years. Your retirement corpus must account for this increase.
What is the Rule of 72?
Rule of 72 estimates how long it takes for prices to double at a given inflation rate: Years to double = 72 ÷ Inflation Rate. At 6% inflation, prices double every 12 years (72/6=12). Your money's purchasing power halves in the same period.