How does inflation affect savings?

Inflation erodes purchasing power over time — money that sits idle (or earns less than the inflation rate) buys less in the future than it does today, even though the number in your account hasn't changed.

What inflation rate should I assume for India?

India's long-term average consumer inflation has generally been in the 5–7% range, though it varies year to year — check the latest RBI or MOSPI data for current figures.

Home / Inflation Calculator

Everyday math

Inflation Calculator

See how inflation erodes purchasing power over time — what today's ₹1,00,000 will cost in the future, or vice versa.

Amount & period

Amount ₹1,00,000

Expected annual inflation 6%

Time period (years) 10 yrs

Result

Future cost of this amount

₹0

Today's purchasing power of a future amount₹0

Total price rise0%

How inflation impact is calculated

Future cost = Amount × (1 + inflation)^years
Today's value of a future amount = Amount ÷ (1 + inflation)^years

If something costs ₹1,00,000 today and inflation runs at 6% a year, it will cost roughly ₹1,79,000 in 10 years — meaning the same ₹1,00,000 will only buy about 56% as much then as it does now.

Related calculators

Figures are estimates for planning purposes only and do not constitute financial advice.