📉 Inflation Calculator

Why inflation matters more than you think

Inflation means prices rise every year — so the same ₹100 buys a little less each year. At 6% inflation, prices roughly double every 12 years. Money sitting idle in a savings account earning 3% is actually LOSING purchasing power every single day.

Future cost = Amount × (1 + inflation)^years

The same formula in reverse tells you today's purchasing power of a future amount. This is why every financial plan — retirement, education, house — must be built on inflation-adjusted numbers, not today's prices.

The quick "Rule of 72"

Divide 72 by the inflation rate to know how many years prices take to double. At 6% → 72 ÷ 6 = 12 years. The same rule works for investments: at 12% returns, your money doubles every 6 years.

Frequently Asked Questions

What inflation rate should I use for India?

India's consumer inflation has averaged roughly 5–6% over the long term. For planning big future costs like education or healthcare, many planners use 7–10% because those costs rise faster than average inflation.

Is this calculator free?

Yes — 100% free, no sign-up, runs entirely in your browser.

How do I protect my money from inflation?

Historically, equity investments (index funds, mutual funds) have beaten inflation over long periods, while savings accounts and cash have not. Returns are never guaranteed — but staying entirely in cash guarantees a loss of purchasing power.

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