Inflation Calculator
See what today's money will be worth in the future — or how much more you'll need to maintain your current purchasing power as prices rise.
What is inflation and why does it matter?
Inflation is the rate at which the general level of prices for goods and services rises over time, gradually reducing the purchasing power of money. A 6% annual inflation rate means something that costs 100 today will cost 106 next year — and about 179 in ten years. Money sitting in a low-interest account loses real value every year.
Understanding inflation is essential for financial planning: your retirement corpus, savings goals, and investment targets all need to account for the fact that the same nominal amount will buy less in the future.
How to use this calculator
- Current value — an amount you want to think about in today's terms: your monthly salary, a savings goal, or a specific expense.
- Inflation rate — expected annual inflation. Consumer price inflation has historically averaged 4–7% in emerging markets, 2–4% in developed ones.
- Time period — how many years into the future you want to project.
The result shows what today's amount will effectively cost in the future — meaning how much you'll need to have the same purchasing power.
The inflation formula
A worked example
Monthly expenses of 3,000 today at 6% annual inflation:
| Year | Monthly cost |
|---|---|
| Today | 3,000 |
| 5 years | 4,015 |
| 10 years | 5,372 |
| 20 years | 9,621 |
| 30 years | 17,230 |
In 30 years your current 3,000 of monthly expenses will require 17,230 to cover the same lifestyle. This is why retirement planning must account for inflation — not just how much you need today.