Arup
Inflation Impact Calculator
See how rising prices reduce the real value of your money — and plan ahead.
View Year-by-Year Breakdown
| Year | Future Cost of Same Goods | Real Value of Today’s ₹ | Purchasing Power Loss (%) |
|---|
How This Calculator Works
Future cost is calculated as FV = PV × (1 + i)n. The real value (purchasing power) of today’s money in n years is PV ÷ (1 + i)n. Rate is treated as constant, compounded annually.
Disclaimer: Actual inflation varies year to year and across categories (food, fuel, healthcare, education). Treat results as a planning estimate, not a forecast.
Frequently Asked Questions
What inflation rate should I use for India?
India’s long-term average CPI inflation is approximately 5–6%. Use 6% for general savings planning, and 8–10% for healthcare or education goals, which historically inflate faster than CPI.
What is purchasing power and how does it decrease?
Purchasing power is how much a unit of currency can buy. As prices rise, each rupee buys fewer goods. At 6% inflation, purchasing power roughly halves in approximately 12 years.
Does this calculator account for income growth?
No — it shows inflation’s effect on a fixed sum. Real wealth growth requires investment returns that exceed inflation (a positive real return).
Why is education and healthcare inflation higher?
Education and healthcare costs in India have historically risen at 8–12% annually — significantly faster than general CPI — due to limited supply, rising quality standards, and surging demand.
How can I protect against inflation?
Invest in assets that have historically beaten inflation: equity mutual funds, REITs, gold, and inflation-indexed bonds (like RBI Inflation Indexed National Savings Securities). Holding cash or low-yield fixed deposits alone erodes real wealth.
