Quick Summary
Inflation refers to the rise in prices of goods and services over time, reducing customers’ purchasing power. As prices increase, the same amount of money buys fewer items. Understanding the inflation rate in India is key to financial planning. The price change of goods and services over a given period is known as inflation. As prices rise, customers’ purchasing power decreases, as they cannot make as many purchases as before. Using an inflation calculator in India, one may determine how inflation affects one’s purchasing power in the future.
An Inflation Calculator in India is an effective online tool that calculates the money’s inflated value over various periods. Given the current inflation rate, you can use an inflation rate calculator in India to determine the present worth of your investments. You can also use an inflation calculator in India to determine the actual returns on investment without considering outside economic factors. Thus, it is a helpful tool for creating your investment portfolio, as inflation lowers your gains and accentuates your losses.
To calculate inflation, the Consumer Price Index (CPI) is the method used. It computes a weighted average value of each to determine how much the price of products and services has changed.
Step 1- To find the inflation price, one must first insert the current cost. For instance, the current cost is 100000.
Step 2- Enter the rate of interest – here, it is 10%.
Step 3- Enter the time period, which is 10 years, here. The calculator will calculate the amount and inflation rate in India for the next 5 years in seconds, and it will calculate the value of 1 lakh after 10 years of inflation. The inflation rate here is 10%, and the amount will become 259,374.
An inflation calculator helps estimate how inflation impacts the future value of money and investments. For example, if a good costs ₹500 this year and ₹450 last year, the inflation is ₹50. Using an inflation calculator can help individuals plan for the effects of inflation on their savings, investments, and expenses over time. Thus, an inflation calculator in India calculates the impact of inflation on a person’s purchasing power, allowing better financial planning.
The main objective of any investor’s savings and investments is to grow their capital over time to meet future financial needs. An inflation adjustment calculator is crucial for understanding the true value of investments over time. Using an inflation calculator in India helps assess how inflation might impact savings.
Despite good intentions, external factors like inflation can significantly affect savings by driving up the cost of goods and services, thereby reducing purchasing power. With an inflation calculator in India, you can estimate how much your purchasing power might decrease over time.
1. Tracking Purchasing Power: Helps users understand how the value of money changes over time due to inflation.
2. Long-Term Financial Planning: Assists in forecasting future expenses, savings, and investments by accounting for inflation.
3. Estimating the future value of assets: An inflation calculator can help you estimate the future value of your assets. This can help you know the worth of your money or assets on a future date.
The formula to calculate the inflation is
(B – A)/A x 100.
Where A is the initial number and B is the ending number. The formula requires a starting and ending number for a specific good or service to determine the inflation rate. Then subtract the two to find the difference. The difference will show how much the price of the specific goods or services has increased. Divide the difference by the initial number. To find the inflation rate, multiply it by 100.
Examples –
To find the inflation rate calculator for apples in March 2023, compared to March 2013. If the price of apples in 2023 was 200, and in 2013 it was 100, then by using the formula (B – A)/A x 100, the inflation rate will be
A = 200, B= 100
(100-200)/200*100
The inflation rate is 50%.
Similarly, you can also calculate the value of 1 lakh after 10 years of inflation to understand how purchasing power decreases over time.
Inflation directly impacts savings, investments, and daily expenses. An inflation calculator in India helps you estimate the future value of money, making financial planning smarter and more accurate. By preparing for inflation and employing smart financial strategies, individuals and businesses can better withstand its effects and maintain financial stability. Think about cost-cutting measures for a moment before you do anything.
Want to explore helpful techniques to save and grow your hard-earned money? Dive into our guide on Save Money, and you can also check our inflation-adjusted SIP calculator.
Deflation refers to a continuous decline in the overall price level of goods and services, which raises money’s purchasing power but can cause reduced spending, investment, production, and economic growth.
Inflation steadily reduces money’s purchasing power over time. Therefore, the value of 1 crore after two decades will be much lower, meaning it won’t buy the same quantity of goods and services as today.
The most used index for measurement is the Consumer Price Index (CPI) to calculate the inflation rate. The formula to calculate the inflation rate is
(Prior CPI – Current CPI)/Current CPI*100. The percentage change in the inflation rate is the answer you get. You can also calculate the inflation rate through an online calculator.
Adjusted for inflation, ₹35 crores in 1975 equals about ₹1,038 crores today (2025). Over five decades, cumulative inflation has drastically reduced money’s purchasing power, turning that past sum into a far greater value in present-day terms.
The CPI inflation calculator uses the average Consumer Price Index for a given calendar year. This data represents changes in prices of all goods and services purchased for consumption by urban households. This index value has been calculated every year since 1913.
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Authored by, Divya Jain
Content Curator
Divya merges a love for storytelling with instructional design to create content that both educates and inspires. She has written for e-learning platforms, exam prep sites, and student communities, always placing creativity at the core of her work.
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Chegg India does not ask for money to offer any opportunity with the company. We request you to be vigilant before sharing your personal and financial information with any third party. Beware of fraudulent activities claiming affiliation with our company and promising monetary rewards or benefits. Chegg India shall not be responsible for any losses resulting from such activities.
