Calculate how inflation erodes your money's purchasing power over time
Our Inflation Calculator shows how rising prices erode your money's purchasing power. Use it to plan for future expenses, retirement, and investment goals.
India's average CPI inflation has been around 5-6% over the last decade. However, specific categories like education (8-10%), healthcare (7-9%), and housing (6-8%) often outpace general inflation. For retirement planning, use 6-7% inflation rate.
If your investment returns 10% but inflation is 6%, your real return is only about 3.77% (not 4%). This is because (1.10/1.06) - 1 = 3.77%. Always evaluate investments on real returns, not nominal.
What is the current inflation rate in India?
As of 2026, India's CPI inflation is approximately 4.5-5.5%, within RBI's target range of 2-6%. However, for long-term planning, use 6% as a conservative estimate.
How much will ₹1 lakh be worth in 10 years?
At 6% annual inflation, ₹1 lakh today will have the purchasing power of approximately ₹55,800 in 10 years. You would need ₹1,79,000 in 10 years to buy what ₹1 lakh buys today.
What investments beat inflation in India?
Equity mutual funds (10-12% historical returns), PPF (7.1%), NPS (9-10%), and real estate have historically beaten inflation. Fixed deposits (5-7%) barely keep pace with inflation.
How does inflation affect retirement planning?
Inflation is the biggest enemy of retirement savings. If you need ₹50,000/month today, at 6% inflation you will need ₹1,60,000/month in 20 years. Start early and invest in inflation-beating assets.
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