MoneyFree, ad-light financial calculators for India, the US and the Gulf – each with the formula, a worked example and a quick-reference table.
See how much today’s money will be worth in the future once inflation erodes its purchasing power.
Formula
Future value of purchasing power = Amount / (1 + inflation)years
Worked example
Rs 10,00,000 today, at 6% inflation for 15 years, will buy what Rs 4,17,265 buys today. Put another way, you would need about Rs 23,96,558 in 15 years to match today’s Rs 10,00,000.
Quick reference
| Inflation | in 10 yr | in 20 yr | in 30 yr |
|---|---|---|---|
| 4% | Rs 68 | Rs 46 | Rs 31 |
| 6% | Rs 56 | Rs 31 | Rs 17 |
| 8% | Rs 46 | Rs 21 | Rs 10 |
What Rs 100 today will be worth.
Frequently asked questions
Why does inflation matter for savings?
If your savings earn less than the inflation rate, their real value falls every year even though the rupee figure rises. To preserve purchasing power your after-tax return must beat inflation.
What inflation rate should I assume?
India’s long-run retail inflation has averaged roughly 5-6%. For long-term goals like retirement, many planners use 6-7% to be conservative; for education costs, higher.