Inflation Calculator
Calculate future cost and today’s purchasing power using an assumed inflation rate.
Assumptions and limitations
- Future cost = present amount × (1 + inflation)^years.
- Real value = future amount ÷ (1 + inflation)^years.
- A constant inflation assumption is a planning model, not a forecast.
Illustrative projections only
SmartFintool provides mathematical calculations and educational information. It does not provide personalised investment advice. Mutual fund returns are not guaranteed and tax rules can change.
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₹1.00 Lakh
Future Cost
₹1.79 Lakh
Needed in 10 years
Today’s Value
₹55.84 K
Approx Doubling
12.0 yrs
At 6% inflation, ₹1.00 Lakh today has roughly the same purchasing power as ₹1.79 Lakh after 10 years. Conversely, ₹1.00 Lakh received after 10 years would be worth about ₹55.84 K in today’s rupees.
Why inflation matters
Inflation reduces purchasing power over time. A goal that costs ₹10 lakh today may cost significantly more in future, especially for education, healthcare and retirement. Always compare nominal returns with inflation-adjusted real returns.
Frequently Asked Questions
What does an inflation calculator show?
It shows how much money you will need in future to match today’s purchasing power, and how much a fixed future amount is worth in today’s rupees.
What inflation rate should I assume?
For general Indian household planning, 5–6% is a common long-term assumption. Education and healthcare costs may require higher assumptions.
Related free calculators
Example check: ₹1,00,000 × (1 + 6/100)^10 = ₹1,79,085.