Inflation Calculator — See How Inflation Erodes Your Savings
Calculate the future cost of goods and services due to inflation. Understand how your purchasing power decreases over time and plan investments accordingly.
Inflation is the silent wealth destroyer that most people underestimate. At 6% annual inflation Rs 1 lakh today will have the purchasing power of only Rs 55839 in 10 years and Rs 31180 in 20 years. This means you need your investments to earn returns above the inflation rate just to maintain your current lifestyle. Our inflation calculator shows you exactly how much goods will cost in the future so you can set appropriate savings and investment targets.
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Key Information
| Parameter | Details |
|---|---|
| India Average Inflation (10yr) | 5% - 6% CPI |
| Food Inflation Average | 6% - 8% |
| Education Inflation | 10% - 12% per year |
| Healthcare Inflation | 8% - 10% per year |
See inflation impact on your money
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Use Calculator NowFrequently Asked Questions
How much will Rs 1 crore be worth in 20 years?
At 6% average inflation Rs 1 crore in 20 years will have the purchasing power of only Rs 31.18 lakh in today's terms. This means if you need Rs 1 crore worth of today's lifestyle in 20 years you actually need to accumulate Rs 3.21 crore. This is why retirement planning requires much larger corpus than most people assume.
What is the real rate of return on investments?
Real return is your investment return minus inflation. If your FD earns 7% and inflation is 6% your real return is only 1%. If your equity mutual fund earns 12% and inflation is 6% your real return is 6%. This is why equity investments are essential for long-term wealth creation as they are among the few asset classes that consistently beat inflation.
Why is education inflation higher than general inflation?
Education costs in India have been increasing at 10-12% annually much higher than the general inflation of 5-6%. A engineering degree costing Rs 5 lakh today will cost approximately Rs 13 lakh in 10 years and Rs 34 lakh in 20 years. Parents need to start education planning early using equity-oriented instruments to beat education inflation.
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Last updated: 24 March 2026