Currency Inflation Calculator
Calculate purchasing power erosion over time due to inflation
Inflation Details
Quick Presets:
Future Purchasing Power
What ₹1,00,000 today will be worth after 10 years
Impact Breakdown
Real-World Example
What you can buy with ₹1,00,000 today will cost approximately ₹1,79,085 in 10 years.
This means you'll need to earn at least 6% returns just to maintain purchasing power.
Understanding Inflation
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power over time.
- •India CPI: Consumer Price Index averages 5-7% historically
- •RBI Target: Reserve Bank of India targets 4% (+/- 2%)
- •Silent Wealth Killer: ₹1 lakh today ≈ ₹55,839 in 10 years (6% inflation)
Beat Inflation Strategy
Invest in Equity
Long-term equity returns (12-15%) beat inflation
Avoid Idle Cash
Savings accounts (3-4%) lose to inflation
Diversify Assets
Mix of stocks, gold, real estate for protection
💡 Key Insights
Rule of 72: Money halves in value in 72/inflation_rate years (72/6 = 12 years)
Real Returns: Nominal returns - Inflation = Real returns (what matters)
Emergency Fund: Keep 6-12 months expenses liquid despite inflation drag
Fixed Income Risk: FD @ 7% barely beats 6% inflation after tax