Priyanka Personal Finance
Smart Money · Simple Words · India
Smart Money · Simple Words · India
Inflation quietly shrinks your money every year. Enter an amount, a time period and an inflation rate to see its future buying power, how much everyday things will cost, and why idle money loses value.
| Item | Today | In 15 years |
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Educational use only · Not financial advice · Inflation and returns vary — figures are illustrative
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.