How to use the Inflation Calculator
- 1
Enter the cost of an item or your monthly expenses today.
- 2
Set a yearly inflation rate.
- 3
Choose the number of years from now.
- 4
Read the future cost and the increase over today's price.
The formula
Future cost = C × (1 + i)^tC is today's cost, i is the yearly inflation rate as a decimal (6% = 0.06) and t is the number of years.
Worked example
Something that costs ₹1 lakh today would cost about ₹2,39,656 in 15 years at 6% inflation. In other words, the price rises by roughly ₹1.40 lakh, well over double.
Tips
- Use different rates for different costs; education and healthcare have tended to rise faster than groceries.
- Money in a savings account earning less than inflation loses purchasing power every year.
- Apply this calculator to your monthly expenses before you plan retirement.
Frequently asked questions
What will ₹1 lakh be worth in 15 years?
At 6% inflation, you would need about ₹2.40 lakh in 15 years to buy what ₹1 lakh buys today. Put the other way, ₹1 lakh kept idle would buy only about 42% of what it buys now. Higher inflation widens the gap.
What inflation rate should I use for planning?
Many people use around 6% a year for general household expenses as a planning assumption. Use a higher rate for education and medical costs. If your planning horizon is long, a slightly higher rate adds a buffer against surprises.
How does inflation affect my savings?
Inflation reduces what your money can buy. If your savings earn less than the inflation rate after tax, their real value falls every year. That is why long-term goals usually need investments with growth potential, alongside lower-risk options for short-term needs.
How long does it take for prices to double?
At 6% inflation, prices roughly double in about 12 years. A quick rule is to divide 72 by the inflation rate. At 8% it takes about nine years, and at 4% about 18 years, so even small differences in inflation matter over time.