Inflation Calculator

What is Inflation?

Inflation is the rate at which the general prices of goods and services rise over time, which steadily reduces the purchasing power of a fixed sum of money. What ₹1,00,000 buys you today will buy less in the future if prices keep rising, even though the number itself has not changed. This is why long-term financial goals need to account for inflation, not just the current cost of the goal.

What is the Inflation Calculator?

The Inflation Calculator is an online tool that projects the future, inflation-adjusted cost of a current expense or financial goal, such as a child's education or a wedding. You enter the current cost, an expected inflation rate, and the number of years until you need the money, and it shows you the future cost instantly, along with how much purchasing power is lost along the way.

How Does the Inflation Calculator Work?

The calculator uses the standard future value formula:

Future Cost = Current Cost × ( 1 + Inflation Rate )^Years

The difference between the future cost and the current cost is the total increase, or the purchasing power lost to inflation over that period. In plain terms, it compounds the current cost forward every year at the inflation rate you expect, the same way an investment compounds returns, except here it works against you by making things cost more.

How to Use the Indiabulls Securities Inflation Calculator

Enter the current cost of the goal or expense you are planning for, adjust the expected inflation rate (India's retail inflation has typically averaged 5-7% a year), and set the number of years until you need the funds. The calculator instantly shows the future cost, the total increase, and a growth curve of how the cost rises year on year, helping you set a realistic investment target.

Benefits of Using an Inflation Calculator

• Plan realistic goals. See the true future cost of a goal instead of underestimating it at today's price.
• Set the right investment target. Know how much you actually need to accumulate, not just today's cost.
• Skip the maths. The compounding calculation is done instantly and accurately.
• Compare scenarios. Test different inflation assumptions and time horizons in seconds.

Inflation Calculation Example

Suppose a course you plan to fund costs ₹1,00,000 today, and you expect inflation to average 6% a year over the next 10 years. Using the formula, the future cost works out to about ₹1,79,085, an increase of roughly ₹79,085. This means the same course you could afford for ₹1,00,000 today will cost close to ₹1,79,085 a decade from now, so any savings or investment plan for this goal should target that higher, inflation-adjusted figure.

Why Inflation Matters When You Invest with Indiabulls Securities

Knowing how much a goal will really cost in the future helps you invest with a clear target instead of guessing. Indiabulls Securities gives you access to stocks and mutual funds, along with the tools and support to help you invest towards inflation-adjusted goals over time. Opening a Demat account is quick, and account opening is free. Remember that actual inflation can vary from any assumed rate, so revisit your goal periodically.

Planning How Much to Invest for a Goal?

Once you know the inflation-adjusted future cost of your goal, you can work out the monthly investment needed to reach it with our SIP Calculator →, or project how a one-time investment could grow towards it with our Lumpsum Calculator →.

Frequently Asked Questions

Ready to start investing towards your future goals? Open a free Demat account with Indiabulls Securities and put your inflation-adjusted targets to work.

Open Free Account