Estimate the future cost of today’s expense, or the purchasing power of a fixed future amount. Use an assumed inflation rate to put long-term savings goals in context.
How to use the Inflation calculator
Put future expenses and savings amounts into comparable purchasing-power terms. Use a rate suitable for the scenario rather than assuming it predicts official inflation.
- Amount
- In Future cost mode, enter today’s expense. In Today’s value mode, enter a fixed future amount.
- Inflation assumption
- Enter an annual percentage. A negative value models deflation.
- Period and mode
- Choose whole years from 1 to 100 and the direction of the calculation.
Select Calculate, review the result and its breakdown, then change one input at a time to compare scenarios.
Formula and calculation method
Future cost compounds today’s price at the annual inflation assumption. Today’s value discounts a fixed future amount by the same factor. P is the entered amount, R is annual inflation as a decimal and t is years.
See the numbers in context
At assumed 6% inflation, something costing ₹1,00,000 today would cost about ₹1,79,085 in 10 years. Conversely, a fixed ₹1,00,000 available in 10 years would have about ₹55,839 of today’s purchasing value.
Illustrative inputs · rounded to the nearest rupeeWhat your result means
The result is a cost or purchasing-power equivalent, not investment profit. The change line compares the adjusted amount with the entered amount. Mode labels explain which direction is being calculated.
Scenarios worth comparing
- Compare inflation assumptions for a long-term goal such as education or retirement.
- Compare nominal investment projections with the future cost of the goal they are intended to fund.
Assumptions and limitations
- Inflation is held constant and compounded annually.
- This does not predict CPI or the price of an individual item.
- Healthcare, education, housing and other expenses may change at different rates.
- No investment returns, taxes, exchange rates or changes in consumption are modeled.
Frequently asked questions
Does 6% represent a live inflation reading?
No. It is an adjustable planning assumption, not a current CPI quote or forecast.
What does Today’s value mode mean?
It expresses a fixed future amount in today’s purchasing-power terms using the entered rate.
Can I model falling prices?
Yes. Enter a negative rate above −100%; the formulas model steady deflation.
Educational estimates only. Verify inputs, applicable rules and product terms before making decisions. Read the disclaimer.