What is an Inflation Calculator?

An Inflation Calculator helps you understand how much a product or service will cost in the future due to inflation. This is crucial in India where average inflation ranges between 4% to 7% annually. Whether you’re planning for your child’s education, healthcare, or a car, inflation silently increases your future costs.

This tool tells you the future price of an item based on the current price, expected inflation rate, and number of years.

How to Use:

1. Enter the current price of the item or service.

2. Add the expected annual inflation rate (e.g., 6%).

3. Enter the number of years you’re planning for.

4. Click Calculate to see:

   • Future Value (inflation-adjusted price)

   • A simple visual comparing today’s value and future value

Example:

• Current Price: ₹5,00,000 (a car)

• Inflation Rate: 6%

• Time: 10 years

📊 Result: The future cost will be ₹8,95,424 — almost double in 10 years.

💡 Why This Matters

Inflation silently eats into your money’s value. ₹1 today will not buy the same tomorrow. By planning with inflation in mind, you:

• Set realistic savings goals

• Avoid underestimating future expenses

• Make better investment decisions

Tip: Always factor 6% inflation into long-term financial planning in India.

🙋 Frequently Asked Questions

Q1: What is inflation in simple terms?
A: Inflation means rising prices. It reduces your purchasing power over time.

Q2: What inflation rate should I assume?
A: Use 4%–6% for moderate items. Use 7%–10% for education and healthcare.

Q3: Can I use this for long-term retirement planning?
A: Yes! This is the foundation for estimating future living expenses.