How This Works
Inflation steadily reduces what a fixed amount of money can buy over time. This calculator shows two sides of the same effect: what an amount worth a certain sum today will cost in the future at your assumed inflation rate, and conversely, what that future amount is worth in today’s purchasing power.
This is useful for sense-checking whether your savings and investments are actually growing your real wealth, or just keeping pace with (or losing to) rising prices.
Frequently Asked Questions
What is a good hedge against inflation?
Investments that have historically outpaced inflation over the long term — such as equity mutual funds and real estate — are commonly used as inflation hedges, though they carry market risk that fixed-income instruments like FDs typically do not.
What is the average inflation rate in India?
India’s retail inflation has historically averaged in the range of roughly 5-7% annually over recent years, though it varies year to year — check current RBI/CPI data for the latest figure rather than relying on a fixed historical average.
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