Inflation Calculator
See what an amount will be worth, or will need to be, after years of inflation.
How it works
Inflation compounds, so after n years prices are (1 + rate)^n times higher. The future amount is the amount multiplied by that factor. The purchasing-power equivalent is the amount divided by it: what money received in the future is worth in today's terms.
Future amount = A × (1 + i)^n
Purchasing-power equivalent = A / (1 + i)^n
i = rate / 100, n = yearsExample
₹1,00,000 at 6% inflation for 10 years: the factor is 1.06^10, about 1.7908. You would need ₹1,79,085 in 10 years to buy what ₹1,00,000 buys today. And ₹1,00,000 received in 10 years is worth about ₹55,839 in today's money, a drop of 44.16%.
Common mistakes
- Treating a fall in purchasing power as the same percentage as the price rise. Prices rising 79% means money loses 44% of its buying power, not 79%.
- Using a rate from one year as if it will hold for decades. Try a few different rates.
Results are estimates and are for informational purposes only.
About this calculator
Enter an amount, a yearly inflation rate and a number of years. Choose whether you want to know what the amount will be worth in today's money after those years, or what future amount will have the same buying power as the amount today. Both figures are always shown, along with the total effect of inflation in money and in percent.
The inflation rate is an assumption you type in, not a forecast, and it is applied as one steady rate compounding every year. Real prices move unevenly and differ between goods. The currency selector only changes how numbers are written; nothing is converted.
Frequently asked questions
What does purchasing power mean?
It is how much a sum of money can buy. When prices rise, the same amount buys less. This calculator expresses a future amount in today's money, so the two can be compared directly.
Does the calculator forecast inflation?
No. You enter the yearly inflation rate yourself and it is applied as a constant rate. The result shows what that assumption implies, not what will happen.
What is the difference between the two modes?
One mode headlines the amount's purchasing power in today's money, A / (1 + i)^n. The other headlines the future amount that matches today's buying power, A × (1 + i)^n. Both numbers are shown either way.
Can I enter a negative rate?
Yes, down to −99%, to model falling prices. The result then shows money gaining purchasing power instead of losing it.