Retirement Calculator
Estimate the retirement corpus you need and the monthly SIP required to reach it.
UsePlanning
Inflation Calculator India
Estimate the future cost of today's money, how much purchasing power inflation removes, and the monthly saving needed to fund that future goal.
Step 1
6% inflationGoal and inflation assumptions
CA view: use goal-specific inflation. School fees, medical costs, and lifestyle services can rise faster than headline CPI.
Step 2
Doubles in 12 yrsFuture cost estimate
Future cost₹1,79,085What today's ₹1,00,000 may cost after 10 years.
Monthly saving needed₹874Assuming 10% annual investment return.
Purchasing power₹55,839Future real value of today's amount in current rupees.
Power lost44.2%Inflation erosion over the selected period.
Step 3
₹79,085 increaseInflation impact breakup
Planning rule:For long-term goals, invest for the future cost, not the current bill. A Rs 1 lakh expense at 6% inflation becomes about ₹1,79,085 in 10 years.
Step 4
Positive real returnReal return check
Post-tax return9%Simplified return after tax drag. Product taxation can differ.
Real return after inflation2.83%Return left after inflation. Negative real return reduces purchasing power.
Yearly schedule
10 yearsFuture cost and monthly saving breakup
| Year | Future Cost | Purchasing Power | Inflation Increase | Power Lost | Monthly Saving |
|---|---|---|---|---|---|
| 1 | ₹1.06 L | ₹94,340 | ₹6,000 | 5.7% | ₹8,436 |
| 2 | ₹1.12 L | ₹89,000 | ₹12,360 | 11% | ₹4,249 |
| 3 | ₹1.19 L | ₹83,962 | ₹19,102 | 16% | ₹2,851 |
| 4 | ₹1.26 L | ₹79,209 | ₹26,248 | 20.8% | ₹2,150 |
| 5 | ₹1.34 L | ₹74,726 | ₹33,823 | 25.3% | ₹1,728 |
| 6 | ₹1.42 L | ₹70,496 | ₹41,852 | 29.5% | ₹1,446 |
| 7 | ₹1.5 L | ₹66,506 | ₹50,363 | 33.5% | ₹1,243 |
| 8 | ₹1.59 L | ₹62,741 | ₹59,385 | 37.3% | ₹1,090 |
| 9 | ₹1.69 L | ₹59,190 | ₹68,948 | 40.8% | ₹971 |
| 10 | ₹1.79 L | ₹55,839 | ₹79,085 | 44.2% | ₹874 |
How the inflation calculator works
This inflation calculator compounds today's cost by the expected annual inflation rate. It also shows the current purchasing power of the same money in the future and estimates the monthly saving needed to fund the inflated goal value.
Which inflation rate should you use in India?
For regular household costs, many planners test 5% to 7%. For education inflation and healthcare inflation, 8% to 10% is often more realistic because fees, hospitalisation, medicines, and specialist services can rise faster than broad consumer inflation.
CA input on real return
Do not compare investment return only with the bank rate. Compare post-tax return with inflation. If an FD earns 7% and tax reduces the effective return, the real return may be close to zero when inflation is 6%.
| Goal type | Common planning range | Why it matters |
|---|---|---|
| Household expense | 5% to 7% | Useful for rent, groceries, utilities, and lifestyle budgeting. |
| Education | 8% to 10% | School and college fees often rise faster than CPI. |
| Healthcare | 8% to 12% | Medical treatment, insurance premiums, and elder care need a larger buffer. |
Inflation calculator FAQs
What is inflation adjusted value?
It is the future value of today's money after prices rise. For example, if a goal costs Rs 1 lakh today and inflation is 6%, it may cost about Rs 1.79 lakh after 10 years.
How do I calculate purchasing power loss?
The calculator discounts today's amount by the inflation factor. The difference between today's amount and its future purchasing power is the value lost to inflation.
Should I use the same inflation rate for every goal?
No. Use separate assumptions for household expenses, education, healthcare, property, and retirement. Goal-specific inflation gives a better planning estimate.
Is real return the same as investment return?
No. Real return is the return left after inflation, and tax can reduce it further. Long-term money should ideally earn a positive real return after tax.