Inflation calculator
What today's money will be worth in the future.
Your inputs
To see the real return after inflation.
Results
Generated on 11 Oct 2026
Your inputs
| Amount in today's money | ₹1,00,000 |
|---|---|
| Inflation (per year) | 6% |
| Time period | 20 years |
| Your investment return | 12% |
Future cost
₹3,20,714
what ₹1,00,000 today will cost
- Purchasing power
- ₹31,180
- what ₹1,00,000 then is worth today
- Purchasing power lost
- 68.82%
- Real return after inflation
- 5.66%
- 12% return with 6% inflation
See how a different amount, return or period changes the result, side by side.
Year-by-year breakdown
| Year | Future cost | Purchasing power |
|---|---|---|
| 1 | ₹1,06,000 | ₹94,340 |
| 2 | ₹1,12,360 | ₹89,000 |
| 3 | ₹1,19,102 | ₹83,962 |
| 4 | ₹1,26,248 | ₹79,209 |
| 5 | ₹1,33,823 | ₹74,726 |
| 6 | ₹1,41,852 | ₹70,496 |
| 7 | ₹1,50,363 | ₹66,506 |
| 8 | ₹1,59,385 | ₹62,741 |
| 9 | ₹1,68,948 | ₹59,190 |
| 10 | ₹1,79,085 | ₹55,839 |
| 11 | ₹1,89,830 | ₹52,679 |
| 12 | ₹2,01,220 | ₹49,697 |
| 13 | ₹2,13,293 | ₹46,884 |
| 14 | ₹2,26,090 | ₹44,230 |
| 15 | ₹2,39,656 | ₹41,727 |
| 16 | ₹2,54,035 | ₹39,365 |
| 17 | ₹2,69,277 | ₹37,136 |
| 18 | ₹2,85,434 | ₹35,034 |
| 19 | ₹3,02,560 | ₹33,051 |
| 20 | ₹3,20,714 | ₹31,180 |
Assumptions and method
Formula
- Future cost = C · (1 + π)^t
- Purchasing power = A / (1 + π)^t
- Real return = (1 + r) / (1 + π) − 1 (Fisher; never r − π)
Not included
- Inflation changes every year; a constant rate is assumed.
This is an illustration based on the return you entered. Actual returns vary and may be lower or negative.
Mutual fund investments are subject to market risks, read all scheme related documents carefully.
How it works
Inflation means the same money buys less over time. This calculator shows what something that costs a given amount today will cost in future, and what a sum of money will be worth in today’s terms.
It also converts a return into a real return after inflation using the exact formula (1 + r) / (1 + inflation) − 1, rather than the rough r − inflation.
Frequently asked questions
What inflation rate should I use?
India’s consumer price inflation has averaged around 5–6% over long periods. Education and healthcare costs have often risen faster.
Why not just subtract inflation from the return?
Subtraction overstates the real return. With a 12% return and 6% inflation, the real return is 1.12/1.06 − 1 = 5.66%, not 6%.