Inflation Calculator
Inflation reduces the purchasing power of your money over time. What cost ₹100 a few decades ago costs significantly more today. Use our calculator to find the historical or future value of your money with 100% privacy.
⚡ Purchasing Power Fact
At an average inflation rate of 6%, the value of your money halves every 12 years. ₹1 Lakh today will buy what ₹50,000 buys in 2038.
Formula: Value = P / (1 + r)^n. To preserve wealth, your investments must beat the inflation rate.
What is Inflation?
Inflation is the rate at which the general level of prices for goods and services is rising, and, consequently, the purchasing power of currency is falling. Central banks attempt to limit inflation, and avoid deflation, in order to keep the economy running smoothly.
The "Hidden Tax"
Inflation is often called a hidden tax because it reduces the value of your cash savings without you ever seeing a bill. If you keep ₹1,00,000 in a cupboard for 20 years, it will still be ₹1,00,000, but it might only buy what ₹30,000 buys today. This is why investing in assets that grow faster than inflation (like stocks or real estate) is crucial for long-term wealth.
CPI vs. WPI
In India, inflation is primarily measured by two indices:
- Consumer Price Index (CPI): Measures the change in the price of a basket of goods and services consumed by households. This is the "Retail Inflation" that affects you directly.
- Wholesale Price Index (WPI): Measures the change in the price of goods sold and traded in bulk by wholesale businesses.
100% Private Inflation Check
Most financial planning tools use your inflation queries to estimate your "future needs" and push specific investment products. **OrangeTool protects your intent.** This calculator is entirely client-side. We don't see your amounts or your timeline. You can visualize the impact of inflation on your legacy with total privacy.