Inflation Calculator – Future Value & Purchasing Power
Inflation erodes the purchasing power of money over time. Use this calculator to understand how much something that costs ₹X today will cost in the future, or how much your current savings will be worth in real terms.
Calculate Future Value with Inflation
Frequently Asked Questions
How does inflation affect savings?
Inflation reduces the purchasing power of money over time. If your savings don't grow at a rate equal to or higher than inflation, you'll be able to buy less with the same amount of money in the future. For example, ₹100 today might only be worth ₹60-70 in purchasing power after 10 years at 4-5% inflation.
Why should investors worry about inflation?
Investors need to ensure their returns beat inflation to maintain and grow their real wealth. If your investments return 6% but inflation is 5%, your real return is only 1%. This is why equity investments, which historically offer higher returns, are important for long-term wealth creation despite short-term volatility.
How to beat inflation with investing?
To beat inflation, invest in assets that historically provide returns higher than inflation rates. Equity mutual funds, stocks, and real estate have historically outperformed inflation over long periods. Fixed deposits and savings accounts typically offer returns close to or below inflation, making them less suitable for long-term wealth creation.