SwiftCalcTools

Inflation Calculator — Impact of Inflation on Money

Calculate the impact of inflation on your money over time. Find the future value of today's amount or what past prices are worth today.

💰 Finance & Money ✅ Free

By SwiftCalcTools Editorial Team · Formula verified

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How to Use Inflation Calculator

  1. 1Enter the required values in the input fields above.
  2. 2Click the Calculate button or results update instantly as you type.
  3. 3View your results in the output panel below the inputs.
  4. 4Adjust any values to recalculate instantly.

Frequently Asked Questions

Inflation is the rate at which the general price level of goods and services rises over time, eroding purchasing power. If inflation is 6% and your savings earn 4%, you are losing 2% in real terms every year. Over 10 years, ₹1 lakh at 6% inflation becomes worth only ₹55,839 in today's purchasing power.
India's average CPI inflation over the last 30 years (1990-2024) has been approximately 6-7% per year. The RBI targets 4% (with a 2% tolerance band) under its flexible inflation targeting framework. Actual inflation has been higher during some periods (12%+ in 2008-2009, 2011-2012).
CPI measures the average change in prices paid by consumers for a basket of goods and services (food, clothing, housing, fuel, healthcare, education). In India, CPI (Combined) includes rural and urban segments. The MOSPI publishes monthly CPI data. RBI uses this to set monetary policy.
Investment options that historically beat Indian inflation (6-7%): Equity mutual funds (10-15% CAGR), Real estate in metros (8-12%), Gold (10% long-term CAGR), PPF (7.1%, tax-free effective ~10%+ for top bracket). Fixed deposits and savings accounts often barely match inflation, resulting in zero or negative real returns.
The Rule of 70 estimates how long it takes for prices to double: divide 70 by the inflation rate. At 7% inflation, prices double in 70÷7 = 10 years. At 6%, prices double in ~11.7 years. This helps understand how quickly your money loses purchasing power if it doesn't grow at least as fast as inflation.