Inflation Calculator
Where to beat Indian inflation
CPI has averaged ~6%/yr over the last decade. To grow purchasing power, your post-tax return must exceed 6%.
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How inflation compounds
Future cost = Today's cost × (1 + inflation)years. At 6% inflation, ₹1L today = ₹1.79L needed after 10 yrs — just to buy the same basket. That's why cash under the mattress shrinks every day.
- Savings a/c (3%) loses ~3% real value per year against 6% inflation
- FD (7%) barely keeps pace after tax (post-tax ~4.9%)
- Index funds (12% historical) leave ~6% real growth after inflation
Worked example: the ₹50 lunch and the CPI formula
Inflation rate = (CPI₂ − CPI₁) ÷ CPI₁ × 100. If the consumer price index moves from 185 to 198, inflation = 13 ÷ 185 = 7.0%. In money terms: a ₹50 thali that cost ₹50 when the index was 185 costs 50 × (198/185) = ₹53.51 a year later. Run it the other way to feel purchasing power: ₹1,00,000 parked in a 0%-interest account for 10 years at 6% inflation buys only what ₹55,840 buys today — the calculator above shows both directions.
How this calculator works
The tool future-values (or present-values) any amount at your chosen inflation rate, and optionally accepts two CPI index values directly for rate-from-index calculations. India's CPI is published monthly by MoSPI; the long-run average is around 5–6%. All maths runs in your browser. For formulas and method see How to Calculate the Inflation Rate. Content reviewed and updated for 2026.
Frequently asked questions
How is the inflation rate calculated?
Inflation = (CPI₂ − CPI₁) ÷ CPI₁ × 100. If the index rises 185 → 198, inflation is 7.0%. You can enter two CPI values directly in the calculator above.
What is the formula for inflation using CPI?
Same thing: (CPI this period − CPI last period) ÷ CPI last period × 100. CPI tracks the price of a fixed basket of goods and services.
How much will ₹1 lakh be worth in 10 years at 6% inflation?
Its purchasing power falls to about ₹55,840 in today’s money — which is exactly why savings need to earn above-inflation returns. Try your own numbers above.
What was India's average inflation?
CPI inflation in India has averaged roughly 5–6% over the long run, with food and fuel driving most of the swings.
Does the calculator convert between future and present value?
Yes — it shows both what today's amount will cost in the future and what a future amount is worth in today's purchasing power.