Inflation calculator

What your money will actually buy

Prices compound just as returns do. Switch between the two questions people usually ask: future cost — what something that costs a given amount today will cost later — and today’s value, what a sum you expect in future is worth in today’s money.

Your numbers

Change anything; the result updates as you type.

Result

Beating inflation is the first job of any investment.

A return below inflation shrinks what your money buys, however large the number grows. MindForge publishes the backtest behind each of its three strategies, and the two paid ones trade in their own broker-verified Zerodha accounts.

See the strategies

The two formulas

Inflation compounds exactly as a return does, only against you. To carry a cost forward, multiply by (1 + inflation) once for each year; to bring a future sum back to today’s money, divide by it.

future cost = cost today × (1 + inflation)^years · today’s value = future sum ÷ (1 + inflation)^years

How fast prices double

At 6% a year, prices double in about 11.9 years; at 4%, in about 17.7; at 8%, in about 9.0. Over thirty years at 6%, prices rise 5.74 times — so a monthly budget that is ₹50,000 at 30 is ₹2,87,175 at 60.

Which rate to use

For long-range planning in India, 5% to 7% is a common range, and 6% is the default here. Your own inflation can differ from the headline index: school fees, healthcare and rent have often risen faster, so a goal built on one of them deserves that cost’s own history.

Questions

What inflation rate should I use?

For long-range planning, 5% to 7% is a common range for India, and 6% is this calculator's default. For a specific goal, use that cost's own history, since education and healthcare costs have often risen faster than the overall index.

What does in today's money mean?

The amount that buys today what the future sum will buy then. It is the future sum divided by (1 + inflation) raised to the number of years.

How long does it take prices to double?

Divide 72 by the inflation rate for a quick estimate: about 12 years at 6%. The calculator shows the exact figure, which is 11.9 years at 6%.

Does inflation affect money in a savings account?

Yes. Money that earns less than inflation loses buying power every year even though the balance grows. The calculator's kept-as-cash figure shows the extreme case of earning nothing at all.

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