What this estimate uses
Current cost, Expected inflation, Time period.
Planning calculator
What will today’s money be worth later?
Understand how inflation can change the future cost of today’s expenses.
Your estimate
Live result
Future cost
—How it works
A useful estimate, with the assumptions out in the open.
Inflation compounds annually at a constant rate. Real-world prices will vary by category.
This result is an educational estimate. Rates, taxes, fees, product rules, and market returns can change.
India-focused guide
What will today’s expenses cost after 10 or 20 years of inflation?
Enter your own values above to see how inflation changes a future cost and the purchasing power of money. The live result separates the most important totals so you can compare scenarios before making a decision.
Important assumption
Inflation compounds annually at a constant rate. Real-world prices will vary by category.
Created and maintained byAll Tool Central
Formula and content reviewed17 August 2026
See how estimates are builtCalculation methodology
Detailed guide
Understand the result before using it.
The inflation calculator shows two related ideas: how much a cost may rise in the future and how much purchasing power a fixed amount of money may lose. Both use the same compounding assumption in opposite directions.
How inflation changes future cost
Inflation describes a broad rise in prices over time. If a cost grows at a constant annual inflation rate, each year’s increase applies to the already-increased amount from the previous year.
Personal inflation can differ from a broad consumer index because households spend different shares on housing, education, healthcare, transport and food. The selected rate is therefore a planning assumption.
FormulaFuture cost = current cost × (1 + annual inflation)^years
Example: a ₹1 lakh expense at 6% inflation
The future-cost column asks what the same expense may cost later. The purchasing-power column asks what a fixed ₹1 lakh held until that future year would be worth in today’s terms.
| Time period | Future cost of today’s ₹1 lakh expense | Purchasing power of ₹1 lakh |
|---|---|---|
| 5 years | ₹1.34 lakh | ₹74,726 |
| 10 years | ₹1.79 lakh | ₹55,839 |
| 20 years | ₹3.21 lakh | ₹31,180 |
Use inflation consistently in a plan
- Use future cost when estimating the rupee amount a later goal may require.
- Use today’s value when deciding what a future corpus may buy in current terms.
- Avoid mixing a nominal return with an inflation-adjusted goal without translating one side.
- Test more than one inflation rate for goals with uncertain or category-specific costs.
Common questions
Frequently asked questions
Is CPI the same as my personal inflation rate?
No. CPI measures a representative basket. Your experienced inflation depends on what you buy and how those particular prices change.
Why is 20-year purchasing power so much lower?
Inflation compounds. Every year’s reduction in purchasing power builds on the previous years, so the long-term effect is nonlinear.
Should every financial goal use the same inflation rate?
Not necessarily. Education, healthcare, housing and general living costs can behave differently. Use rates appropriate to the scenario and test a range.
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