Investments
Inflation Calculator
Inflation is a silent thief. ₹1 lakh today won't have the same buying power in 10 years. Use this to plan goals, retirement, and understand why parking money in savings accounts is a slow loss.
Inputs
India's long-term CPI inflation has averaged ~6%. Use 5–7% for realistic planning.
Future cost
Same purchasing power, year by year
India's inflation history (CPI annual avg)
- • 2014–2019: ~4.5% (RBI's flexible inflation targeting era)
- • 2020–2022: 5.5–6.7% (COVID supply shocks, food inflation)
- • 2023–2025: 4.8–5.7%
- • 2026 (Apr forecast): ~2.1% (RBI MPC projection — currently a low-inflation period)
- • RBI's target: 4% (±2% band)
For long-term planning, use 5–6%. Short bursts can hit 7%+ but mean reverts. Education and healthcare inflation specifically run higher (8–10%) — plan those goals separately.
Why inflation matters
A savings account at 4% loses to 6% inflation by 2% per year. Over 10 years, that's a ~18% real loss in purchasing power. This is why "safe" money in low-yield instruments is actually risky in real terms.
The escape: equity (12% historical, beats inflation by ~6%), real estate (4–8% appreciation + rental yield), gold (5–8% historical). Your portfolio should beat inflation; if it doesn't, you're getting poorer in real terms.
Formula
FV = PV × (1 + inflation)^years