How do I calculate the effect of inflation on my money?

Future cost = Current cost × (1 + inflation rate)^number of years. For example, ₹1 lakh today at 7% inflation for 10 years becomes roughly ₹1.97 lakh — the same goods and services will cost about twice as much.

What inflation rate should I use for financial planning in India?

India's general (CPI) inflation has typically run 5-7% per year, but education and healthcare costs have historically risen faster, often 10-12% per year — use category-specific rates when planning for those goals rather than the general CPI figure.

How does inflation affect my savings and investments?

Inflation erodes purchasing power — money sitting idle or in low-return instruments loses real value every year. If your investment return is lower than the inflation rate, your money grows in rupee terms but shrinks in what it can actually buy, which is why long-term goals need returns that meaningfully beat inflation.

calculate Free Tools

Investment Calculators

29 free tools — SIP, Tax, FD, Loan, Retirement & more. No login required.

More Tools expand_more

currency_rupee Direct/Reg Cost gap workspace_premium Gratuity Retirement home_work HRA Rent exempt elderly NPS Pension flag Goal Target account_balance EMI Loan trending_up CAGR Returns payments SWP Withdrawal elderly Retire Corpus account_balance_wallet PPF Savings home Rent/Buy Compare health_and_safety Life Ins Cover need show_chart Step-Up Annual hike history_edu What If Real backtest favorite Money Score Health check timeline Timeline Life goals trending_down Inflation Future cost savings Prepayment Save interest sync_alt STP Transfer plan percent XIRR Real returns

29 Calculators

📈 Investment

calculateSIP Calculator paymentsLumpsum flagGoal Planner show_chartStep-Up SIP paymentsSWP sync_altSTP history_eduWhat If Simulator favoriteMoney Health Score timelineFinancial Timeline

🏦 Savings

local_fire_departmentFIRE / Retire Early compare_arrowsMF vs FD currency_rupeeDirect vs Regular account_balanceFD Calculator savingsRD Calculator account_balance_walletPPF Calculator elderlyNPS Calculator

💰 Tax Planning

account_balance_walletIncome Tax receipt_longGST Calculator home_workHRA Calculator workspace_premiumGratuity

🏠 Loans

account_balanceEMI Calculator real_estate_agentHome Affordability homeRent vs Buy savingsLoan Prepayment

🎯 Planning

Calculate Inflation Impact

Current Cost ₹1 L

₹1K₹1 Cr

Inflation Rate (p.a.) 7%

1%15%

Number of Years 10 yr

1 yr40 yr

Purchasing Power Lost

Future Cost of This Expense

₹0

Increase

₹0

₹100 Today Will Feel Like

₹0

—

Typical India Inflation Reference Points

General/CPI Inflation 5–7% p.a.

Education Inflation 10–12% p.a.

Healthcare Inflation 10–14% p.a.

Wedding/Lifestyle Inflation 8–10% p.a.

Learn More About Investing

compare_arrows SIP vs Lumpsum info What is NAV? savings ELSS Tax Saving trending_up IPO GMP Guide

* Calculations assume constant annual returns. Actual mutual fund returns vary. Past performance is not indicative of future results. FD comparison uses 7% p.a. SIP returns are compounded monthly.