Inflation calculator
Two questions, one amount: what today’s cost becomes after some years of rising prices, and what a sum you will receive later is worth in today’s money.
Illustrative only — this is not a projection or a promise of returns. Figures use the inflation rate you entered.
The first figure is today’s cost aged forward at the inflation you set; the second is a future sum brought back to today’s money at the same rate. Both are illustrations, not forecasts.
What this is, and what it isn’t
This is arithmetic on the numbers you typed. It compounds them at the rate you chose and shows you the result. That is all it does.
It is an illustration, not a projection. It is not a forecast, not a recommendation, and not an offer. Nobody knows what any investment will return, so the rate you enter is an assumption you are making, not a rate anyone is offering you. Real returns arrive unevenly — good years, flat years and falling years, in an order nobody can predict — and that order matters as much as the average.
Use the output the way you’d use a rough estimate on the back of an envelope: to see whether the shape of a plan is roughly right, not to decide what a specific rupee amount will be worth on a specific date.
This is arithmetic on the rate you enter. Nobody knows what inflation will be, so run it at two or three rates and look at the spread rather than at any single figure.
What this calculation assumes
The formula is future cost = amount × (1 + inflation)^years. Today’s value is the same sum turned round: amount ÷ (1 + inflation)^years. Three assumptions sit behind it:
- One inflation rate, every year. Prices are assumed to rise by the same percentage each year. Real inflation moves up and down, so treat the rate as your assumption, not a forecast.
- One basket of costs. A single rate is applied to the whole amount. Some costs, such as school fees or medical bills, often rise faster than the general rate; for those, try a higher figure.
- Annual compounding. Prices are assumed to rise once a year, not monthly or daily.
New to the idea behind this? Setting a financial goal walks through it in plain language.
Putting a cost on a goal? See the plan-by-goal pages.
About these calculators
How much will something cost in 10 years?
Enter today’s cost, an assumed inflation rate and the number of years. The tool multiplies the cost by (1 + inflation) once for each year. At an assumed 6%, a cost roughly doubles in 12 years.
What is a future amount worth today?
The same sum turned round: the tool divides the future amount by (1 + inflation) once for each year, to show what it would buy in today’s prices.
Is this figure a projection of what I will earn?
No. Every figure here is an illustration produced from the numbers you type in, at a rate of return you choose yourself. It is arithmetic, not a forecast: mutual fund returns are market-linked and not assured, and the actual outcome will differ.
Does this account for tax, expense ratio or exit load?
Unless a field asks for it, no — the core calculators show how compounding works on the inputs you give. Real outcomes are reduced by the scheme’s expense ratio, by any exit load, and by tax on your gains.
Why do your figures differ from another site’s calculator?
Almost always because of the assumptions, not the maths — the return rate, whether tax and costs are included, and how compounding frequency is handled. Change those to match and the numbers converge. Every one of these is an illustration of arithmetic, not a claim about a real scheme.
Is an SIP better than investing a lump sum?
Neither is universally better — they suit different situations. An SIP spreads your investment across many dates, which fits money that arrives monthly and takes the timing decision off your plate; a lump sum puts money to work at once, which fits money you already hold. Which applies to you depends on your cash flow and goal, so it is a conversation rather than a rule. SIP or lump sum, compared goes deeper.
Talk to us
If you’d rather go through your own numbers with a person than a form, that’s what we’re for. You’ll speak to Himani, who runs H2 — the same person every time.
Other calculators
See all calculators. None of these ask for your name, your phone number or your PAN. Nothing you type is stored or sent anywhere. Use them as often as you like without hearing from us.