Inflation Calculator
Inflation is the silent tax on savings. Enter an amount, an inflation rate and a number of years to see two sides of the same coin: what today's expenses will cost in the future, and what today's money will be worth then.
How to use this calculator
- Enter an amount — a monthly expense, a savings balance, a future goal's today-cost.
- Set the expected inflation rate for your country.
- Enter the years ahead and press Calculate.
- Use the "future cost" row for planning goals; the "worth only" row shows idle cash's decay.
Formula used
Inflation compounds exactly like interest — against you. At 6%, prices double roughly every 12 years (Rule of 72: 72 ÷ 6).
Example calculation
At 6% inflation over 20 years: a lifestyle costing 100,000/month today will cost 320,714/month. Equivalently, 100,000 kept as cash will buy only what 31,180 buys today — losing 69% of its power.
Why inflation matters for every plan
Inflation is the general rise in prices over time, which means every unit of currency buys a little less each year. It's why retirement targets, education funds and insurance covers must be set in future money, not today's — a comfortable corpus by today's prices can be badly short 25 years out.
The flip side defines real returns: an FD earning 7% during 6% inflation grows purchasing power by only ~1%. Beating inflation, not just earning interest, is the actual job of investing.
Why use this calculator?
- Set retirement and education targets in realistic future prices.
- See the real (inflation-adjusted) value of guaranteed returns.
- Understand why idle cash in a savings account quietly loses value.
Frequently asked questions
What inflation rate should I assume?
Use your country's long-run average: roughly 5–6% for India, 2–3% for the US and Eurozone. For education and healthcare goals, use higher rates (8–10%) — those costs historically outpace general inflation.
How long until prices double?
Divide 72 by the inflation rate (Rule of 72). At 6%, prices double in ~12 years; at 3%, in ~24 years.
What is a real return?
Your return minus inflation, approximately. An 8% return during 6% inflation is a ~1.9% real return — the true growth in what your money can buy. Precisely: (1.08 ÷ 1.06) − 1.