How this calculation works
A constant annual inflation assumption compounds over time. Enter the cost today and an assumed annual percentage increase to estimate a future equivalent cost.
Future cost = current cost × (1 + inflation rate ÷ 100)^yearsA worked example
An item costing ₹1,00,000 today would cost approximately ₹1,33,822.56 after 5 years of 6% annual inflation.
Good to know
A planning estimate. Actual products may use different payment dates, fees, tax treatment or rounding. Rates entered here are assumptions, not offers.
The same price tag and the same purchasing power are different
A balance can keep its rupee value while losing purchasing power. If prices rise, the same balance buys less. This calculator asks the opposite question: how large would the future price be if today’s cost rises by the entered annual percentage?
At a constant 6% assumption, something costing ₹1,00,000 today would cost about ₹1,33,823 after five years. That does not mean every item will rise by 6%; it illustrates the effect of one chosen rate on one chosen cost.
Why five years of 6% is more than a 30% increase
The first year’s increase becomes part of the next year’s starting price. Five annual increases of 6% therefore multiply the cost by 1.06 five times. The result is about 33.82% above the initial cost, rather than the 30% obtained by simply adding five percentages.
Try a shorter and longer time period with the same rate to see the compounding effect. It becomes more visible as the number of years grows.
Use an assumption that matches the question
A broad inflation index is a weighted measure across many items. Your rent, education costs or grocery basket can move differently. The entered rate is not automatically appropriate for every future expense.
This tool uses a constant annual rate and does not fetch an official current index. Treat the result as a scenario and revisit the assumptions when the plan or available evidence changes.
A few questions, answered
Is this a prediction of future inflation?
No. It compounds the rate you enter and does not forecast future price changes.
Does it show the future value of my investment?
It shows the future cost of an item under a price-growth assumption. Investment growth and purchasing power require their own appropriately defined calculations.