Inflation Calculator
See how inflation erodes the purchasing power of your savings over time, and determine the nominal amount required to match today's lifestyle in the future.
Inflation is a Silent Tax
At 6%, a budget of ₹50,000 today will feel like ₹20,863 in 15 years unless invested in assets yielding above the inflation rate.
20,863
Real value in 15 yrs29,137
Eroded by inflation1,19,828
Needed to match todayErosion of Purchasing Power Projection
Frequently Asked Questions
What is the average inflation rate in India?
Historically, India's CPI (Consumer Price Index) inflation average settles between 5% and 7% per year. When running projections for long-term goals like retirement or children's higher education, using an inflation estimate of 6% is a prudent guideline.
How does inflation impact savings and investments?
Inflation functions as a silent tax, reducing the purchasing power of your money. If you keep savings in assets yielding 3–4% (like basic savings accounts) while inflation runs at 6%, your real wealth is shrinking. To preserve capital, your investments must generate a post-tax return higher than the inflation rate.
Related Articles
How Inflation Silently Steals Your Wealth Every Single Year
The ₹1 crore that Ramesh saved for his retirement in 2005 felt like a fortune. By 2025, with India's average inflation running at 6-7%, that same ₹1 crore has the purchasing power of roughly ₹33 lakhs in 2005 money. He didn't spend it. He didn't lose it in the market. Inflation simply eroded it to a third of its real value.
Inflation is the silent wealth tax that no government announces. It affects every purchase: groceries, rent, education, healthcare — especially healthcare, which inflates at 10–14% per year in India, well above the general CPI.
For investors, the most important concept is the real rate of return — your nominal return minus inflation. If your FD earns 7% and inflation is 6.5%, your real return is just 0.5%. You're barely preserving purchasing power, not building wealth. Equity over long periods has historically delivered 12–15% nominal returns, which translates to 5–9% real returns — the genuine wealth-building zone.
Always plan your retirement corpus in future rupees, not today's rupees. What costs ₹50,000/month today will cost ₹1.6 lakhs/month in 20 years at 6% inflation. This calculator helps you see that reality clearly — so you plan with the right target.
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