How to use this inflation calculator
- Pick your question under "What do you want to know?": "Future cost of today's money" or "Today's value of future money".
- Enter the amount: a price or budget today, or a sum you will have or receive in future.
- Set the average annual inflation. It starts at 4%, the RBI's CPI target.
- Enter the number of years.
The result shows the future cost or today's value, the cumulative inflation, the purchasing power lost and how long prices take to double. It also tells you where your rate sits against the RBI's 2–6% tolerance band, and gives a year-by-year table.
The inflation formula
Future cost = today's cost × (1 + r)nToday's value = future amount ÷ (1 + r)n r is the average yearly inflation rate as a decimal and n the number of years.
Inflation compounds in the same way as interest. Each year's rise applies to prices that have already gone up, so 4% a year for 10 years adds 48% in total, not 40%. Run backwards, the same factor tells you how much a future sum shrinks in today's rupees.
Worked example
Your household spends ₹1 lakh on something today. At 4% inflation for 10 years, the factor is (1.04)10 = 1.48024.
- Future cost = 1,00,000 × 1.48024 = ₹1,48,024, or ₹48,024 more for the same things.
- Prices rise 48% in total, so ₹1 lakh kept as cash buys only 67.6% of what it does now: 32.4% of its purchasing power is gone.
- At this rate, prices double in about 17.7 years.
If inflation averaged one point higher, at 5%, the same spending would cost ₹1,62,889, another ₹14,865.
What ₹1 lakh costs after 5, 10 and 20 years
The future cost of ₹1,00,000 of spending today, at the bottom, middle and top of the RBI's tolerance band:
| Inflation | After 5 years | After 10 years | After 20 years |
|---|---|---|---|
| 2% | ₹1,10,408 | ₹1,21,899 | ₹1,48,595 |
| 4% | ₹1,21,665 | ₹1,48,024 | ₹2,19,112 |
| 6% | ₹1,33,823 | ₹1,79,085 | ₹3,20,714 |
The gap between 4% and 6% looks small over five years but grows to more than ₹1 lakh over twenty. Over long periods, the rate you assume matters as much as the amount.
What a future ₹1 crore is worth today
Switch to "Today's value of future money" to shrink a future sum back to today's prices. This is the figure to look at when an SIP, FD or retirement projection shows a large number decades from now. Here is what ₹1 crore received in future would buy at today's prices:
| Received in | At 4% inflation | At 6% inflation |
|---|---|---|
| 10 years | ₹67,55,642 | ₹55,83,948 |
| 20 years | ₹45,63,869 | ₹31,18,047 |
| 30 years | ₹30,83,187 | ₹17,41,101 |
At 6%, a crore received in 30 years buys what about ₹17.4 lakh buys now, so a target that sounds generous today may cover far less than you expect.
The RBI's 4% target and CPI
The Reserve Bank of India targets 4% inflation in the Consumer Price Index, with a tolerance band of 2–6% around it. CPI is published by MoSPI (the Ministry of Statistics and Programme Implementation), the source to use for official figures. This calculator starts at 4% and tells you whether your chosen rate is below, within or above the band. A target is a goal, not a forecast, so it is worth testing the top of the band as well.
Real returns: what your savings really earn
Inflation sets the bar your money has to clear. If your savings earn 7% a year and prices rise 4%, your real return is about 1.07 ÷ 1.04 − 1 = 2.88% a year, before any tax. Money that earns less than inflation loses buying power even as the balance goes up. The compound interest calculator shows any FD, RD or SIP projection in today's money, so you can see the real result alongside the headline figure.
Planning goals in today's rupees
Start with what a goal costs today, then grow it for the years until you need the money. A household budget of ₹50,000 a month today would need about ₹1,09,556 a month in 20 years at 4%, or ₹1,60,357 at 6%. Use "Future cost of today's money" to size a goal such as your child's education or a home down payment, then work out the monthly saving with the savings goal calculator. For retirement, the retirement corpus calculator uses the same 4% default and raises your income with inflation every year.
Frequently asked questions
What is the inflation rate in India?
How do you calculate inflation over several years?
What will ₹1 lakh be worth in 10 years?
What will ₹1 crore be worth in 20 years?
Which inflation rate should I use for planning?
How long does it take for prices to double?
Sources and further reading
Independent, official guidance on this topic. Rules differ by country, so check the regulator where you live.
- Consumer Price Index releases · Ministry of Statistics and Programme Implementation
- Reserve Bank of India: regulations, notifications and consumer awareness · Reserve Bank of India
This calculator gives estimates for education and planning. It is not financial advice, and your lender's figures may differ. See how we calculate.