Inflation Impact Calculator
Money that sits idle loses purchasing power. See exactly how much.
RBI targets 4% but Indian household inflation is 6–8%
The real fix for inflation is investing ahead of it.
The main NetCorpus India planner rolls this into a 50-year retirement plan alongside your loans, EPF, taxes, trips, and life goals.
Shows what a given amount of money today will be 'worth' — in terms of purchasing power — after a number of years of inflation, and conversely how much you'd need in the future to match today's buying power.
Future purchasing power of today's ₹X = X ÷ (1 + inflation)^years. It's the same discounting math used throughout the site's other calculators (retirement corpus, SIP 'in today's ₹' figures, SWP) — this page exists as a standalone version of that one calculation for whenever you just need the number directly.
₹1L today, at 7% assumed inflation, has the purchasing power of only about ₹25,800 in 20 years — meaning you'd need roughly ₹3.87L in 20 years just to buy what ₹1L buys today. This is the entire reason 'safe' fixed-return instruments that barely beat inflation don't actually preserve wealth over long horizons.
What inflation rate should I assume for long-term planning?▾
India's headline CPI inflation has averaged roughly 5–7% over the past decade, though your personal inflation rate (driven by education, healthcare, and housing costs) often runs higher than the headline number. 7% is a reasonably conservative planning default for long-horizon goals.
Why does the retirement planner care so much about inflation?▾
Because a corpus that looks large in nominal (future) rupees can be a disappointment in real terms if inflation erodes it faster than expected — sizing a retirement or goal corpus without an inflation assumption is one of the most common planning mistakes.