How this calculator works
Inflation means prices rise over time, so the same rupee amount buys progressively less in the future. This calculator shows that effect in two directions, using the amount, inflation rate, and number of years you enter:
Future cost — what today's amount is likely to cost in the future, if prices rise at your assumed rate every year: Future cost = Current amount × (1 + rate ÷ 100)years.
Purchasing power — the inverse question: what today's rupee amount will actually be "worth" in future terms, i.e. how much less it will buy: Real value then = Current amount ÷ (1 + rate ÷ 100)years.
Both numbers describe the same effect from two angles — one tells you how much more you'll need to spend to buy the same thing later, the other tells you how much less your current rupee amount is really worth once you look ahead to that same future year.
What inflation rate should you use?
The rate is entirely up to you — this calculator doesn't assume or assert a specific inflation figure. India's central bank, the RBI, targets consumer price inflation of 4%, with a tolerance band of 2 percentage points either side (so broadly 2%–6%). A rate around 6% is a commonly used long-term planning assumption for individuals, but it is exactly that: an assumption, not a guarantee of what inflation will actually do in the years ahead. Actual inflation varies from year to year and can run higher or lower than any planning assumption.
This calculator assumes a constant annual inflation rate for the entire period, compounded once a year. Real-world inflation fluctuates year to year and differs across expense categories — treat the output as a planning estimate, not a prediction.
Shunya's CA team can help founders and businesses stay on top of registrations, filings, and tax compliance while you plan for the future.
Talk to a CA →What inflation rate should I assume?
It's a planning assumption, not a forecast. India's RBI targets 4% CPI inflation with a 2% tolerance band either way, so a rate in that general range is a commonly used planning assumption — but actual inflation varies year to year, and nothing here is a prediction of future prices.
Why does money lose value over time?
Because prices generally rise over time, the same rupee amount buys less in the future than it does today. This calculator shows that effect two ways: how much more a fixed basket of goods or services is likely to cost in the future, and how much today's rupee amount would be worth in future terms.
How does this affect my retirement planning?
Retirement and other long-term goals are usually planned in today's rupees, but the actual expenses you'll face decades from now will be in inflated future rupees. Ignoring inflation means underestimating what you'll actually need. See the Retirement Planning Calculator, which inflation-adjusts your expenses before estimating the corpus you'll need.
Does inflation affect all expenses equally?
No. The rate you enter here is a single general assumption, but different categories of spending don't all rise at the same pace — items like education and healthcare have often risen faster than general consumer price inflation in India, while others may rise more slowly. Adjust the rate based on what you're actually planning for, rather than using one blanket figure for everything.
This tool is for quick estimation only and is not a substitute for professional financial advice. Inflation projections are planning assumptions, not guarantees of future prices.
Need help with compliance, not just planning ahead?
Shunya's CA team handles company registration, tax filing, and compliance — fully online.
Get Started →