Inflation calculator for future costs and purchasing power
Inflation means prices rise over time, so the same money buys less each year. This inflation calculator answers the two questions that matter for planning: how much will something cost in the future, and what is a future amount worth in today’s money?
Enter an amount, an inflation rate and a number of years. In Future cost mode you see what today’s price grows to; in Today’s value mode you see the purchasing power of money you will receive later — a pension, a maturity payout or a savings target. Quick presets cover approximate long-run rates for India and the US and the 2% target used by several central banks, and a year-by-year table shows the whole path.
It is useful for education and wedding goals, retirement planning, salary negotiations and judging whether an investment really beats inflation. Results use a constant rate, so they are estimates, not financial advice — real inflation varies from year to year and from one category of spending to another.
How to use the Inflation Calculator
- Choose Future cost or Today’s value.
- Pick your currency and enter the Cost today (or the Future amount).
- Set the Inflation rate (per year), or tap a preset.
- Enter the number of Years — decimals are allowed.
- Read the result, the total increase, the purchasing power lost and how long prices take to double.
- Review the year-by-year table and download it as CSV if needed.
Inflation Calculator features
Two directions
Grow today’s price into the future, or discount a future sum back to today’s money.
Rate presets
One tap for approximate long-run averages (India ~6%, US ~3%) and common central-bank targets.
Doubling time
Shows how many years it takes prices to double at your chosen rate.
Year-by-year table
Cost, increase and real value for every year, exportable to CSV.
Any currency
Rupees with lakh/crore grouping, dollars, pounds, euros, dirhams and more.
Inflation formulas with worked examples
Future cost: FV = Cost today × (1 + i)n, where i is the yearly inflation rate as a decimal and n the number of years. Today’s value: PV = Future amount ÷ (1 + i)n.
Example 1: something that costs ₹1,00,000 today will cost about ₹1,79,085 in 10 years if inflation averages 6% (1.0610 ≈ 1.791).
Example 2: ₹1,00,000 received 10 years from now, at the same 6% inflation, buys what about ₹55,839 buys today — a 44% loss of purchasing power. Over 20 years it falls to about ₹31,180.
Example 3: a $50,000 expense at 3% inflation becomes about $90,306 in 20 years.
How much prices multiply
Price multiples at a constant rate. The rule of 70 (70 ÷ rate) gives a quick estimate of the doubling time.
| Inflation | After 10 years | After 20 years | After 30 years | Prices double in |
|---|---|---|---|---|
| 2% | 1.22× | 1.49× | 1.81× | 35 years |
| 3% | 1.34× | 1.81× | 2.43× | 23.4 years |
| 4% | 1.48× | 2.19× | 3.24× | 17.7 years |
| 6% | 1.79× | 3.21× | 5.74× | 11.9 years |
| 8% | 2.16× | 4.66× | 10.06× | 9 years |
Choosing an inflation rate
- India: consumer price inflation has averaged very roughly 5–6% a year over long periods, with some years much higher or lower. The Reserve Bank of India targets 4% CPI inflation within a 2–6% band.
- United States: CPI inflation has averaged roughly 3% a year over the long run. The Federal Reserve, the Bank of England and the European Central Bank each target 2%.
- These presets are approximate historical averages and policy targets, not current data or forecasts — check your country’s latest figures.
- Some costs rise faster than headline inflation. Education and healthcare have often risen faster, so use a higher rate for those goals.
- Compare your investments with inflation: an FD paying 7% when inflation is 6% grows real wealth by only about 1% a year before tax. See the lumpsum calculator (which can adjust for inflation) and the SIP calculator to plan a goal, or measure past growth with the CAGR calculator.
Inflation Calculator FAQ
How do I calculate the future cost of something with inflation?
Multiply today’s cost by (1 + inflation rate)^years. At 6% for 10 years, multiply by 1.791. This inflation calculator does it for any amount, rate and period.
What will ₹1 lakh be worth after 10 years?
At 6% inflation, ₹1 lakh in 10 years buys roughly what ₹55,839 buys today. Switch to “Today’s value” to try other rates and periods.
What inflation rate should I use for India?
Many planners use about 6% as a conservative long-run figure for general expenses, and higher rates for education or medical costs. The RBI’s official target is 4%. Use the rate that fits your goal and check recent data.
What is purchasing power?
It is how much a sum of money can buy. When prices rise, the purchasing power of a fixed amount falls — at 3% inflation, money loses about a quarter of its value in 10 years.
What is the rule of 70?
Divide 70 by the inflation rate to estimate how many years it takes prices to double. At 7%, prices double in about 10 years.
Does this calculator use official CPI data?
No. It applies a constant rate that you choose, which makes it suitable for planning ahead. For exact historical comparisons, use your government’s published CPI index values.