How this inflation calculator works
Future cost = current amount x (1 + inflation rate)^years. Present value equivalent reverses the same compounding assumption.
Worked example
At 6% inflation, ?1,00,000 today becomes about ?1.79 lakh after 10 years. This is a planning estimate, not a forecast.
Assumptions
- Inflation remains constant for the selected period.
- The entered amount represents today's cost.
- No separate category-specific inflation is applied.
- The result is rounded for readability.
Limitations
- Actual inflation differs by category and household.
- Education and healthcare inflation can differ from general inflation.
- The calculator does not forecast official inflation rates.
Frequently asked questions
Why calculate inflation?
Inflation helps estimate how much more a future goal may cost compared with today.
Is 6% inflation guaranteed?
No. It is only an editable planning assumption.
Can this be used for retirement?
Yes, it can estimate future expenses, but retirement planning also needs taxes, returns and withdrawal assumptions.
Why is present value shown?
It shows what a future amount may feel like in today's purchasing power.
Does inflation affect SIP goals?
Yes. A goal amount should usually be inflation-adjusted before calculating required SIP.
Does this use official CPI?
No. It applies the rate entered by the user.
Is my data stored?
No. The calculation runs in the browser.