Understanding the Inflation Calculator

Inflation causes prices to rise over time, reducing the purchasing power of money. This calculator shows how much more money you'll need in the future to buy what costs a certain amount today.

How to Use:

1. Present Value: Enter today's price or amount.
2. Inflation Rate: Input the expected annual inflation rate (typically 3-7%).
3. Number of Years: Specify how many years into the future.
4. Calculate: See the future price and total inflation impact.

Calculation Formula:

Future Price = Present Value × (1 + Inflation Rate/100)^Years

• Present Value (P): Today's price or amount.
• Inflation Rate (r): Annual inflation rate (in %).
• Years (n): Number of years in the future.
• Future Price (FP): P × (1 + r/100)^n
• Inflation Impact: Future Price - Present Value

Example: If something costs ₹1,00,000 today and inflation is 6% per year, it will cost ₹1,79,085 after 10 years. The inflation impact is ₹79,085.