Formula
future cost = cost today × (1 + i)ⁿvalue in today's money = amount ÷ (1 + i)ⁿaverage inflation = (later ÷ earlier)^(1/n) − 1
- i — yearly inflation rate as a decimal
- n — number of years
Prices compound just like interest does.
Worked example
1,00,000 at 6% for 10 years
- What do you want to find?
- What something costing X today will cost later
- Amount
- 100,000
- Inflation per year
- 6 %
- Years
- 10 years
What costs 100,000.00 today will cost
179,084.77
Extra cost from inflation: 79,084.77
Prices rise by: 79.08%
How it works
At 6% a year, something that costs 1,00,000 today costs about 1,79,085 in 10 years. Turned around, 1,00,000 received in 10 years buys only what 55,839 buys today — inflation quietly cuts its purchasing power by 44%.
This calculator uses the single inflation rate you type; it doesn't pull official price-index data, because real inflation differs by country, year and type of spending. To compare a savings return with inflation see Compound Interest Calculator, FD Calculator and CAGR Calculator.
Assumptions and limits
- A constant inflation rate; you supply the rate (no CPI data is used).
A calculation, not financial adviceThis calculator does the arithmetic from the numbers and assumptions you give it. Real financial products add fees, taxes, rate changes and conditions it can’t know. Confirm figures with your lender, bank or a qualified adviser before you decide.
Related tools
Compound Interest CalculatorGrowth of a lump sum with interest on interest, for any compounding frequency.FD CalculatorMaturity amount and interest on a fixed deposit with quarterly, monthly, yearly or simple interest.SIP CalculatorProjected value of a monthly investment at an assumed return, with an optional yearly step-up.CAGR CalculatorThe steady yearly growth rate between a starting and ending value over a period.Percentage Increase CalculatorMathFind the percentage increase between two values, or add a percentage to a number.