Inflation Calculator
Understand the impact of inflation on your expenses over time.
Inflation Formula
Future Cost = Current Cost × (1 + r)^t
Current Cost = Present value of goods/services = ₹ 1,00,000
r = Annual inflation rate = 6% = 0.0600
t = Time period = 10 years
How Inflation is Measured
CPI = (Cost of Basket in Current Year / Cost of Basket in Base Year) × 100
Inflation Rate = (CPI Current − CPI Previous) / CPI Previous × 100
Your Calculation
Future Cost = ₹ 1,00,000 × (1 + 0.0600)^10
Future Cost = ₹ 1,00,000 × (1.0600)^10
Future Cost = ₹ 1,00,000 × 1.7908
Future Cost = ₹ 1,79,085
What costs ₹ 1,00,000 today will cost ₹ 1,79,085 after 10 years at 6% inflation.
At 6% annual inflation, your money's purchasing power reduces by 44% over 10 years. You'll need ₹ 79,085 more to buy the same goods.
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