Inflation Calculator

Frequently Asked Questions

• What is inflation and why does it matter?
  Inflation is the rate at which prices rise, reducing what your money can buy. A 6% rate means ₹100 today will only buy what ₹94 did last year — so long-term savings must grow faster than inflation to preserve purchasing power.
• What inflation rate should I use?
  For India, use 5–7% for long-term planning (CPI has averaged ~6% over the past decade). For USD calculations, 2–3% is typical. The calculator works with any rate you enter.
• How is future value calculated?
  Future nominal value = Present value × (1 + inflation)^years. The tool also shows the real purchasing-power equivalent so you can plan retirement or savings goals in today's money.
• Is this the same as the Consumer Price Index?
  CPI is how inflation is measured (a basket of goods). This calculator lets you apply any inflation rate — past CPI, forecast, or a custom assumption — to see its effect on a rupee amount over time.