Inflation Calculator: Future Cost and Purchasing Power

An inflation calculator estimates how much a current amount may cost in the future if prices rise every year. It is useful for education planning, retirement planning, household budgeting, and long-term financial goals.

Use the Inflation Calculator to enter a current cost, expected annual inflation rate, and duration.

What inflation changes

Inflation reduces purchasing power over time.

For example, if something costs Rs 1,00,000 today and inflation is 6% per year, it may cost much more after 10 years. The calculator estimates that future cost using annual compounding.

Inflation formula

The formula is:

Future cost = current cost x (1 + inflation rate) ^ years

Where:

• Inflation rate = expected annual inflation / 100
• Years = duration

The calculator also shows:

• Price increase = future cost - current cost
• Inflation factor = future cost / current cost
• Cumulative inflation = (inflation factor - 1) x 100
• Purchasing power of today's amount = current amount / inflation factor

Future cost vs purchasing power

Future cost answers:

How much might this expense cost later?

Purchasing power answers:

How much might today's money be worth later after inflation?

Both views are useful. Future cost helps set targets. Purchasing power helps understand why idle cash can lose value over time.

Where inflation planning helps

Inflation planning can help with:

• Education expenses
• Retirement income planning
• Medical expense planning
• Rent and living cost estimates
• Long-term goal planning

If you are planning a target corpus, try the Goal SIP Calculator after estimating the inflation-adjusted goal amount. If you are planning retirement withdrawals, try the SWP Calculator.

Assumptions to remember

Assumptions:

• Inflation rate stays constant.
• Inflation compounds annually.
• Category-level inflation may differ from headline inflation.
• Income growth, taxes, and investment returns are not included.
• Actual future prices can vary by country, city, and personal spending pattern.

Final thought

An inflation calculator helps convert today's cost into a future estimate. Use the Inflation Calculator, then connect the result with Goal SIP or SWP planning for a more realistic long-term plan.

Disclaimer: This guide is for general informational and educational purposes only. It is not investment, tax, legal, accounting, or financial advice. Inflation assumptions are estimates and actual future prices may vary.