What this calculation tells you
A rupee amount and what it can buy are different ideas. This calculator models how the price of the same basket changes over time at an assumed constant inflation rate. It also shows the future purchasing power of an unchanged nominal sum.
The inflation input is a scenario, not a live national index or a forecast. Prices for education, rent, fuel and other items can follow very different paths. Use a rate relevant to the expense you are modelling and compare more than one scenario.
The method, explained
Future cost = current cost × (1 + inflation ÷ 100)^years Future purchasing power = current amount ÷ (1 + inflation ÷ 100)^years
The inputs use the units printed beside each field. Values shown in result cards are rounded for readability; the calculator keeps more precision while applying the formula.
A worked example
Cost today: ₹1,00,000.00 · Assumed annual inflation: 6 % · Time horizon: 10 years.
Equivalent future cost: ₹1,79,084.77
This example uses the inputs above. Your result changes when you change them.
Assumptions & limitations
- Inflation remains constant and compounds annually.
- There is no investment return in the purchasing-power calculation.
- The model does not fetch CPI, sector-specific inflation or price forecasts.
Questions about this tool
Why is future purchasing power lower at positive inflation?
If prices rise while the amount of money stays fixed, that amount buys less of the original basket.
Can I model falling prices?
Yes. A negative inflation assumption models a constant annual price decline, not a prediction that prices will fall.
Published by Sanu Tech Innovation LLP · Model notes updated 30 September 2026. Read our calculation standards or report a reproducible issue.