What today’s money will cost in the future
Inflation means the same goods cost more each year. If prices rise by a fixed percentage every year, the future cost is today's amount multiplied by one plus the inflation rate, raised to the number of years. The flip side is that money kept idle buys less over time; the tool shows both views.
Many people use 5 to 6 percent for general planning in India, and a higher figure for education or healthcare costs, which have historically risen faster.
Goals such as retirement or a child's education are years away, so planning in today's rupees will leave you short.
CPI is the official measure of past inflation. This calculator projects forward using whatever rate you enter.