Priyanka Personal Finance
Smart Paisa · Simple Baat · India
Smart Paisa · Simple Baat · India
Mehangai har saal chupchaap aapke paise ko chhota karti hai. Ek amount, time period aur inflation rate daalein aur dekhein iski future buying power, rozmarra cheezein kitni mehngi hongi, aur idle paisa kyun value khota hai.
| Cheez | Aaj | 15 saal baad |
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Educational use only · Financial advice nahi · Inflation aur returns badalte hain — figures illustrative hain
Inflation is the steady rise in prices over time. At 6% inflation, something that costs ₹100 today costs about ₹107 next year, and roughly doubles in 12 years. The flip side is that the same money buys less — ₹1 lakh kept idle loses nearly half its buying power in 12 years. That's why simply saving cash, or earning less than inflation in a low-rate FD, quietly makes you poorer in real terms.
Future cost grows by compounding inflation:
Future cost = Amount × (1 + inflation)^years
And today's buying power of a future rupee is the reverse: Amount ÷ (1 + inflation)^years. We apply this to your amount and to common Indian items so you can feel the impact, not just see a number.
It shows how inflation reduces the value of money over time. Enter an amount, a number of years and an inflation rate, and it shows what that money will be worth in the future and how much everyday items will cost.
India's long-term retail (CPI) inflation has averaged roughly 5–7%. A figure of 6% is a reasonable default, though education and healthcare costs often rise faster at 8–10%.
By investing in assets that earn more than inflation — equity mutual funds via SIP have historically returned about 11–13%, comfortably ahead of inflation, while idle savings or low-rate FDs can lose real value after tax and inflation.
Because prices rise every year. At 6% inflation, things roughly double in cost every 12 years, so the same ₹1 lakh buys about half as much. Inflation quietly erodes purchasing power if your money is not growing.