Inflation Calculator – Free Online Utility

Calculate how inflation affects purchasing power over time.

₹
%

₹1,000 in 2016 is equivalent to

₹1,411

in 2026

Alternatively, to have the purchasing power of ₹1,000 from 2026 back in 2016, you would only need:

₹709

What is an Inflation Calculator?

An inflation calculator computes the effect of inflation on the purchasing power of money over time. It answers the common question: "How much would an amount of money from the past be worth today?" or conversely, "How much will my money be worth in the future?"

The Hidden Cost of Inflation

Inflation acts as a hidden tax on savings. If you keep money in a savings account that yields a 2% interest rate while the inflation rate is 3.5%, your money is actually losing purchasing power at a rate of 1.5% per year. This highlights the importance of investing in assets that outpace inflation over the long term.

Frequently Asked Questions

Inflation is the rate at which the general level of prices for goods and services is rising, and, consequently, the purchasing power of currency is falling.
It calculates the equivalent value of an amount of money from the start year to the end year, assuming a constant average inflation rate. The formula used is: Future Value = Present Value × (1 + Inflation Rate)^Years.
Purchasing power is the value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. As inflation goes up, purchasing power goes down.

Related Free Tools

  • CAGR Calculator — Calculate the Compound Annual Growth Rate of your investments.
  • Savings Goal — Plan your savings to reach a specific financial goal.
Browse all related Financial Calculators tools