Inflation Calculator
Understand how inflation reduces your money's value
📊 What is Inflation Calculator?
An Inflation Calculator helps you understand how the value of money decreases over time due to rising prices. It shows the real purchasing power of your money in the future.
👉 Example: ₹1,00,000 today will not have the same value after a few years because of inflation.
💡 What is Inflation?
Inflation is the rate at which prices increase over time, reducing the purchasing power of money.
What is Real Purchasing Power?
Real purchasing power means what your money can actually buy.
- ✔ Today: ₹1,00,000 can buy certain goods
- ❌ Future: Same ₹1,00,000 will buy less due to inflation
Inflation silently reduces your wealth over time.
🧮 Inflation Calculator Formula
Future Value = Present Value ÷ (1 + Inflation Rate)n
- Present Value = Current amount (₹)
- Inflation Rate = Annual inflation (%)
- n = Number of years
📉 Value Lost Formula
Value Lost = Present Value − Future Value
🔍 Example Calculation
- Amount = ₹1,00,000
- Inflation = 6%
- Time = 10 years
100000 ÷ (1.06)10 = ₹55,839 (approx)
Value Lost = ₹1,00,000 − ₹55,839 = ₹44,161
❓ Frequently Asked Questions (FAQ)
1. What is a good inflation rate in India?
Typically 5% to 7% is considered average.
2. Does inflation compound yearly?
Yes, inflation compounds every year and reduces value over time.
3. How to beat inflation?
Invest in assets like mutual funds, stocks, and real estate.
4. Is inflation always bad?
Moderate inflation is normal, but high inflation reduces purchasing power significantly.
👉 This calculator shows real value after adjusting for inflation (purchasing power), not the nominal value.