Inflation Calculator

Inflation Inputs

Purchasing Power Erosion

What is Inflation?

Inflation is the gradual decline in money’s purchasing power over time. It means you’ll need more money in the future to buy the same goods or services. Use our inflation calculator to estimate how much your expenses will rise based on inflation rates.

How is Inflation Calculated?

Future Value = Current Amount × (1 + Inflation Rate)^Years
Example: ₹10,000 at 5% inflation for 10 years:
Future Value = 10,000 × (1 + 0.05)¹⁰ = ₹16,288.95

Key Concepts of Inflation

Purchasing Power

The actual value of money based on what it can purchase.

CPI (Consumer Price Index)

A key metric tracking inflation through price changes.

Inflation FAQs

Inflation is measured using indices like the CPI, which monitors price shifts in a standard basket of goods and services.

A 2-4% inflation rate is often ideal, supporting economic growth without overburdening consumers.