Inflation Calculator — See How Inflation Erodes Your Savings — India 2026
Calculate the future cost of goods and services due to inflation. Understand how your purchasing power decreases over time and plan investments.
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.
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.
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Inflation Calculator
Understanding Your Investment Returns
This calculator projects your returns using compound interest, where your earnings generate their own earnings over time. The power of compounding means that even small regular investments can grow into substantial wealth over long periods. For example, investing just Rs 5,000 per month at 12% expected returns for 25 years can grow to over Rs 1 crore — of which only Rs 15 lakh is your own money and Rs 85 lakh is compounding returns. The key factors that determine your final corpus are: the amount invested, the rate of return, the duration of investment, and the frequency of compounding.
Important Considerations
Past returns do not guarantee future performance, especially for market-linked instruments like mutual funds and equities. The returns shown are estimates based on the rate you enter. Equity investments carry market risk but have historically delivered 12-15% CAGR over 15+ year periods in India. Fixed income options like PPF (7.1%) and FD (6-7.5%) offer lower but more predictable returns. Diversifying across asset classes — equity, debt, gold, and real estate — reduces overall portfolio risk while optimizing returns for your risk tolerance.
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 |
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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.
What is compound interest and why does it matter?
Compound interest means you earn interest on your interest, not just your principal. Over long periods, this creates exponential growth — even small regular investments can grow into substantial wealth over 15-25 years.
Is SIP better than lumpsum investment?
SIP invests a fixed amount monthly, averaging out market volatility through rupee cost averaging. Lumpsum works better when markets are low. For most investors, SIP builds discipline and removes the need to time the market.
How much should I invest monthly to become a crorepati?
At 12% expected returns, a monthly SIP of Rs 5,000 for 30 years grows to approximately Rs 1.76 crore. Increasing your SIP by 10% annually makes the corpus even larger. Start early, stay consistent.
Are investment returns taxable?
PPF returns are tax-free. Equity mutual fund LTCG above Rs 1.25 lakh/year is taxed at 12.5%. FD interest is taxed at your slab rate. NPS offers an additional Rs 50,000 deduction under 80CCD(1B).
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Last updated: March 2026