Inflation Calculator: Buying Power Over Time

Inflation raises the general price level. An inflation calculator answers either: what will today’s basket cost later? or what is a future (or past) amount worth in today’s money?

Illustrative only — not investment or policy advice. CPI baskets and personal spending differ from any single rate.

Future cost of a basket

future cost = present cost × (1 + i)^t

i = annual inflation (decimal), t = years.

Example: ₹100 today, 5% for 10 years → 100 × 1.05^10 ≈ ₹162.89.

Real (inflation-adjusted) value

real value = nominal / (1 + i)^t

₹162.89 in ten years at 5% inflation ≈ ₹100 of today’s buying power in this model.

Why savers care

Nominal story	Real story
FD pays 6%	If inflation is 5%, real is thin
Salary rose 8%	If inflation is 6%, real gain ≈ 2% (approx.)

Pair with SIP or compound interest scenarios when you want nominal growth vs real goals — still assumptions, not forecasts.

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Use TryCalculatingNow Inflation Calculator

TryCalculatingNow Inflation Calculator converts present ↔ future buying power for a rate and timeline you choose. Sibling: savings goal calculator for months-to-target planning.

FAQ

Is CPI the same as my personal inflation?

Not exactly — your mix of rent, food, and fuel may diverge from the index.

Can inflation be negative?

Yes (deflation); formulas still apply with negative i.

Should I use monthly inflation?

Annual effective rates are common in calculators; convert carefully if you start from monthly CPI changes.

Does this predict markets?

No — it only rescales currency by an assumed inflation path.