Inflation Calculator
Calculate Inflation step by step: Future cost = amount × (1 + r)ᵗ; future value of today's money = amount ÷ (1 + r)ᵗ.
In short
Formula: Future cost = amount × (1 + r)ᵗ; future value of today's money = amount ÷ (1 + r)ᵗ.
What this calculator does
Calculate Inflation step by step: Future cost = amount × (1 + r)ᵗ; future value of today's money = amount ÷ (1 + r)ᵗ. Worked example, questions and limitations included.
Use it to turn Currency (symbol only, never converted), Amount today, Annual inflation rate, Number of years into a checked result you can compare, copy, or rerun with different assumptions.
The page shows the formula, a numeric worked example, and the assumptions that affect this personal finance calculation.
Inputs and what they mean
- Currency (symbol only, never converted)
- — choice value.
- Amount today
- — number value.
- Annual inflation rate
- — number value.
- Number of years
- — number value.
How to use it
- Enter each value in the unit shown next to the box (use the unit converter first if your numbers are in other units).
- Check the breakdown to see every intermediate step.
- Read the limitations before relying on the result.
Formula
Compound inflation over t years at a constant annual rate r (OpenStax Principles of Finance, time value of money).
The inflation rate is your own assumption or a published CPI figure you look up — no rate is built in.
Future cost = amount × (1 + r)ᵗ; future value of today's money = amount ÷ (1 + r)ᵗ.
Inputs used: Currency (symbol only, never converted), Amount today, Annual inflation rate, Number of years.
Worked example
Ten years of 6% inflation
- Factor = 1.06¹⁰ ≈ 1.7908.
- Future cost = 100,000 × 1.7908 = ₹1,79,085.
- Today's ₹1,00,000 will then buy 100,000 ÷ 1.7908 = ₹55,839 worth.
Reading the result
The headline figure is the main answer. Any breakdown underneath shows the parts that make it up, so you can check the working and see what changes when you adjust an input.
Limitations and assumptions
- Constant rate assumed; real inflation varies year to year.
- A single average rate cannot reflect your personal basket of goods.
- Not investment or financial advice.
- Results are educational estimates built only from the figures you enter. They are not personalised investment, tax, legal or accounting advice. Rates, growth and discount assumptions are always yours to choose.
- The result depends on the values you enter for this inflation calculator; it does not supply missing rates, rules, prices, dates, or assumptions for you.
Common questions
Where do I find the real inflation rate?
National statistics offices publish CPI inflation — for example the BLS in the US or MoSPI in India. Use their latest figure or your own assumption.
Can inflation be negative?
Yes — that is deflation, and the calculator handles negative rates down to -100%. Check the formula, example, and limitations on this page before using the result for a real personal finance decision.
Does this use official CPI data?
No. It applies the rate you enter; it does not fetch or store any price index.
How do I use the Inflation Calculator?
Enter the required values for Currency (symbol only, never converted), Amount today, Annual inflation rate, Number of years. The calculator applies the formula on this page and shows the main result with any supporting breakdown so you can check the arithmetic.
What formula does the Inflation Calculator use?
Future cost = amount × (1 + r)ᵗ; future value of today's money = amount ÷ (1 + r)ᵗ. The visible formula section above lists the calculation path and the edge cases the page handles, so the result can be checked without relying on the form alone.
Can the Inflation Calculator be used for exact decisions?
Use it as a calculation aid, not as a substitute for checking the underlying rule, contract, policy, or professional advice that applies to your situation. When a result depends on local rules, personal details, prices, or dates, enter those values yourself and confirm them before acting.
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